560 S.W.3d 739
Tex. App.2018Background
- TopDog Properties (insured) reported wind/hail damage in Aug 2013; GuideOne estimated repair cost at $1,896.88 and declined payment because the policy deductible was $5,000.
- TopDog sought additional inspection and later sought appraisal under the policy; GuideOne initially declined to invoke appraisal, stating only it could do so.
- TopDog sued in Aug 2014; GuideOne later moved to compel appraisal, which was ultimately ordered on interlocutory appeal.
- Appraisers and an umpire unanimously awarded $168,808 as the amount of loss; GuideOne paid $146,927.20 (award minus $5,000 deductible and 10% depreciation) in Oct 2016.
- TopDog moved for partial summary judgment on breach of contract and Prompt Payment of Claims Act (PPCA) claims; GuideOne moved for traditional and no-evidence summary judgment arguing payment of the appraisal award defeated TopDog’s claims.
- The trial court granted GuideOne’s motion and denied TopDog’s; TopDog appealed and this court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of contract — insurer’s initial underpayment | TopDog: appraisal showing a much larger loss proves GuideOne breached by refusing to pay in 2013 | GuideOne: appraisal process was contractually available and GuideOne paid the appraisal award, so no breach or damages remain | Court: No viable breach claim — GuideOne paid appraisal award; TopDog failed to show damages from breach |
| PPCA (Prompt Payment) penalties | TopDog: late payment of appraisal award after statutory deadlines supports PPCA penalties | GuideOne: no independent injury; benefits under the policy were paid, so no statutory recovery | Court: No PPCA recovery — TopDog received policy benefits and showed no independent damages required for extra-contractual recovery |
| Common-law bad faith | TopDog: payment of appraisal award does not bar bad-faith claims arising from initial denial/delay | GuideOne: payment cured the claim and TopDog lacks independent injury to sustain bad-faith damages | Court: No bad-faith recovery — absent independent damages beyond policy benefits, extra-contractual claims fail |
Key Cases Cited
- Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211 (Tex. 2003) (standard of review for summary judgment)
- Sci. Spectrum, Inc. v. Martinez, 941 S.W.2d 910 (Tex. 1997) (summary judgment evidence rules)
- FM Props. Operating Co. v. City of Austin, 22 S.W.3d 868 (Tex. 2000) (considering cross-motions for summary judgment)
- Domingo v. Mitchell, 257 S.W.3d 34 (Tex. App.—Amarillo 2008) (elements of breach of contract claim)
- In re Allstate County Mut. Ins. Co., 85 S.W.3d 193 (Tex. 2002) (appraisal clause may bind parties on amount of loss depending on clause language)
- USAA Tex. Lloyds Co. v. Menchaca, 545 S.W.3d 479 (Tex. 2018) (extra-contractual recovery requires injury independent of policy benefits)