Guiles v. GeoVera Advantage
24-40411
| 5th Cir. | Mar 24, 2025Background
- Plaintiffs John and Jennifer Guiles submitted a homeowners insurance claim to GeoVera for damages resulting from Winter Storm Uri in 2021.
- After disputes over the amount of the loss, the policy's appraisal provision was invoked; in August 2022, the appraisal panel set repair costs at $48,744.43.
- GeoVera paid the appraisal award (minus deductible and prior payments) in September 2022, and later paid statutory interest as required by the Texas Prompt Payment of Claims Act.
- Plaintiffs still sued, alleging violations of Chapters 541 and 542 of the Texas Insurance Code and breach of the common law duty of good faith and fair dealing.
- The district court granted summary judgment for GeoVera, finding that full payment of benefits and interest barred further claims absent an independent injury.
- Plaintiffs appealed the grant of summary judgment to the Fifth Circuit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to bad faith or statutory damages after payment of appraisal award and interest | Benefits paid late entitle insured to further damages under tort/statute, even after award paid | Payment of award plus interest bars further liability without independent injury | Payment of appraisal award plus interest bars liability absent independent injury |
Key Cases Cited
- Biasatti v. GuideOne Nat’l Ins. Co., 601 S.W.3d 792 (Tex. 2020) (payment of appraisal award forecloses bad faith liability absent independent injury)
- Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019) (insurer's liability for bad faith extinguished by appraisal award unless independent injury shown)
- Mirelez v. State Farm Lloyds, 127 F.4th 949 (5th Cir. 2025) (insureds cannot recover for bad faith if only damages sought are paid policy benefits)
- Senechal v. Allstate Vehicle & Prop. Ins., 127 F.4th 976 (5th Cir. 2025) (same holding as Mirelez and Ortiz)