Gulley v. State Farm Lloyds
2011 Tex. App. LEXIS 3505
| Tex. App. | 2011Background
- Gulley asserted a homeowners claim for foundation damage from a below-slab plumbing leak.
- State Farm paid under the Dwelling Foundation Endorsement, which has a 15% coverage cap for such damage.
- Gulley sued for additional benefits under the Water Damage Endorsement, claiming coverage for deterioration from ongoing water leakage.
- Each party moved for traditional summary judgment on how the endorsements apply, creating competing interpretations as a matter of law.
- The trial court denied both summary judgment motions, and later declined to decide which endorsement applied, while certifying a controlling legal question for an agreed interlocutory appeal under §51.014(d).
- This court reversed and remanded, holding that the trial court erred by not deciding the substantive legal issue and by improperly using §51.014(d) to bypass a merits ruling on the controlling legal question.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which endorsement governs the loss | Gulley contends Water Damage Endorsement applies. | State Farm contends Dwelling Foundation Endorsement applies (15% cap). | Trial court erred by not deciding the substantive issue; remanded to determine the controlling legal question. |
Key Cases Cited
- National Union Fire Insurance Co. v. Crocker, 246 S.W.3d 603 (Tex. 2008) (contract-based interpretation of insurance policies)
- Kimbrell v. Molinet, 288 S.W.3d 464 (Tex.App.-San Antonio 2008) (agreed interlocutory appeal on limitations; governing when trial court rules on pivotal issue)
- Enterprise Products Partners, L.P. v. Mitchell, 340 S.W.3d 476 (Tex.App.-Houston [1st Dist.] 2011) (illustrates trial court ruling on controlling question of law and appeal certification)
- Comcast Cable of Plano, Inc. v. City of Plano, 315 S.W.3d 673 (Tex.App.-Dallas 2010) (agreed interlocutory appeal addressing controlling question of law)