United Services Automobile Association v. Joseph Hayes, Jr and Joanne Hayes
01-14-00133-CV
Tex. App.Jun 1, 2015Background
- Homeowners Joseph and Joanne Hayes sued USAA after storm damage, seeking contract and extra-contractual damages and attorney’s fees.
- Jury answered Question 1A that USAA failed to comply with the policy regarding exterior damage (including roof, garage door, other exterior items) and Question 1B that USAA did not fail re: interior damage.
- Jury also made findings on Question 4 (unfair or deceptive acts/practices) and awarded $20,000 in Question 5 for exterior damage.
- USAA contends it paid for replacement/repair of the garage door, gas light, and certain soffits; testimony that repairs remained undone does not prove nonpayment.
- USAA argues there is no evidence of policy breach as to the roof, garage door, or other exterior items, and thus no basis for contract or extra-contractual damages or fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether USAA breached the policy for exterior items (roof, garage door, other exterior damage) | Hayes: jury found breach on exterior damage | USAA: evidence shows it paid for garage door, gas light, and some repairs; no proof of unpaid items or breach | Court (as argued by USAA): no evidence USAA failed to compensate; jury exterior breach cannot support damages |
| Whether jury’s Question 4 findings (unfair/deceptive acts) can support damages/fees | Hayes: UDC findings support extra-contractual recovery | USAA: extra-contractual recovery requires an underlying breach; no breach here so extra-contractual damages not recoverable | Court (as argued by USAA): without breach, extra-contractual damages/fees not recoverable |
| Whether the $20,000 award in Question 5 for exterior damage is supported | Hayes: award flows from jury findings on exterior and UDC questions | USAA: award not supported because no compensable breach and Question 4 findings cannot substitute | Court (as argued by USAA): $20,000 award unsupported by evidence of breach or recoverable extra-contractual liability |
Key Cases Cited
- Ashford Partners, Ltd. v. ECO Res., Inc., 401 S.W.3d 35 (Tex. 2012) (no damages without proof of breach supporting claim and fees)
- Hanson v. Republic Ins. Co., 5 S.W.3d 324 (Tex. App.—Houston [1st Dist.] 1999, pet. denied) (extra-contractual claim is distinct from contractual claim)
- Progressive County Mut. Ins. Co. v. Boyd, 177 S.W.3d 919 (Tex. 2005) (extra-contractual damages require an underlying breach of policy or statutory duty)
- Grafa v. Morgan, 696 S.W.2d 492 (Tex. App.—El Paso 1985, writ dism’d) (no breach, no breach-of-contract damages)