351 S.W.3d 103
Tex. App.2011Background
- Bazan obtained a Texas homeowner's policy from Farm Bureau after initial denial, with coverage up to $160,000 for the house and $96,000 for contents.
- Fire destroyed the house on January 14, 2009; Farm Bureau began a cause-and-origin investigation and conducted a criminal background check of Bazan.
- Bazan admitted in an interview to having a criminal record, contradicting prior policy applications; Farm Bureau then decided to rescind the policy and refunded premiums.
- Farm Bureau paid $127,549.69 to Regency per the Mortgage Clause; the insurer later sought only nominal damages and Bazan pursued breach, DTPA, and negligence claims.
- Bazan died before trial; the Heirs pursued Bazan's DTPA claim and other relief; trial produced a verdict including misrepresentation, ratification, and damages to Bazan’s estate, and Farm Bureau counterclaims were asserted.
- The trial court denied some post-verdict motions; on appeal, the court held the DTPA claim and ratification issues were insufficient to support damages, and reversed to render judgment for the Heirs nothing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do the Heirs have standing to pursue Bazan's DTPA claim? | Heirs contend standing to pursue Bazan's DTPA claim exists. | Farm Bureau argues DTPA claims do not survive Bazan's death and cannot be pursued by heirs. | DTPA claims do not survive; Heirs lack standing. |
| Does Bazan's misrepresentation render the insurance contract void and thus immaterial to ratification? | Farm Bureau asserts misrepresentation voids contract and ratification is immaterial. | Court should consider ratification despite void contract only if contract could be ratified. | Jury finding of misrepresentation voids the policy; ratification is immaterial. |
| Can damaged amounts stemming from the DTPA and ratification theories support a damages award? | Heirs argue damages supported by DTPA and ratification findings. | No damages flow from DTPA or ratification since those theories fail. | DTPA and ratification findings cannot support damages; award reversed. |
Key Cases Cited
- Lukasik v. San Antonio Blue Haven Pools, Inc., 21 S.W.3d 394 (Tex.App.-San Antonio 2000) (DTPA claims do not survive the death of the consumer)
- Mendoza v. American National Insurance Co., 932 S.W.2d 605 (Tex.App.-San Antonio 1996) (representative could not pursue insured's DTPA claims)
- First National Bank of Kerrville v. Hackworth, 673 S.W.2d 218 (Tex.App.-San Antonio 1984) (deceased consumer's estate cannot pursue DTPA claims)
- Jack v. State, 694 S.W.2d 391 (Tex.App.-San Antonio 1985) (void contract generally cannot be ratified)