Kelly Spurlock, as Legal Representative for the Estate of J.O. Spurlock v. Beacon Lloyds Insurance Company and Grantham-Adkins Insurance Agency
494 S.W.3d 148
Tex. App.2015Background
- J.O. Spurlock was sole named insured on a Beacon HO-A homeowner’s policy effective May 31, 2008–May 31, 2009 covering dwelling (Coverage A) and personal property (Coverage B).
- J.O. Spurlock died January 26, 2009; Kelly Spurlock was later appointed legal representative of his estate.
- In April 2009 Kelly discovered personal property missing from the insured residence at 704 Cedar and claimed theft; Beacon denied coverage for the loss.
- Kelly sued Beacon (breach of contract, Prompt Payment of Claims Act) and Grantham-Adkins (negligent procurement), later narrowing claims to breach/Prompt Payment against Beacon and negligent procurement against Grantham-Adkins.
- Beacon and Grantham-Adkins each moved for traditional summary judgment; the trial court granted both motions and this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the policy covered post-death loss of personal property | Spurlock: §9(b) makes legal representative an insured "with respect to the premises" meaning personal property on the premises is covered | Beacon: "premises" refers to building/grounds only; §9(b) does not extend personal property coverage to legal representative | Court: "premises" unambiguous as building/grounds; no personal property coverage after named insured's death — summary judgment for Beacon |
| Whether Prompt Payment of Claims Act claim survives without coverage | Spurlock: statutory claim independent of coverage entitlement | Beacon: Act requires insurer be liable under policy; no coverage, no statutory liability | Court: Act claim fails because no underlying policy liability — summary judgment for Beacon |
| Whether agent negligently failed to procure coverage for post-death contents | Spurlock: Grantham-Adkins should have procured or warned that policy excluded contents after death | Grantham-Adkins: no evidence Spurlock requested coverage prior to loss; contacts occurred after theft or after death and no duty arose | Court: No summary judgment evidence of a pre-loss request or duty; summary judgment for Grantham-Adkins |
Key Cases Cited
- Don’s Bldg. Supply, Inc. v. OneBeacon Ins. Co., 267 S.W.3d 20 (Tex. 2008) (insurance-policy construction follows contract rules)
- Tanner v. Nationwide Mut. Fire Ins. Co., 289 S.W.3d 828 (Tex. 2009) (give policy terms ordinary meaning)
- Progressive Cnty. Mut. Ins. Co. v. Boyd, 177 S.W.3d 919 (Tex. 2005) (Prompt Payment Act requires insurer liability under policy)
- Goodyear Tire & Rubber Co. v. Mayes, 236 S.W.3d 754 (Tex. 2007) (summary-judgment review standards)
- Am. Mfrs. Mut. Ins. Co. v. Schaefer, 124 S.W.3d 154 (Tex. 2003) (definition of ambiguity in policy language)
- Coker v. Coker, 650 S.W.2d 391 (Tex. 1983) (ambiguity resolved against drafter)