United States Fire Insurance Co. v. Lynd Co.
399 S.W.3d 206
Tex. App.2012Background
- Lynd sued U.S. Fire and RSUI for breach of contract, statutory interest under Chapter 542, and fees relating to hail damages at Mandalay and Oak Hollow apartments.
- Policy period ran March 31, 2006 to March 31, 2007; U.S. Fire insured up to $5M per occurrence, RSUI provided excess coverage.
- Spring 2006 produced hail/wind storms; Lynd initially claimed loss in May 2006 for CAT 71; RSUI contended Mandalay and Oak Hollow were damaged by CAT 68 in April 2006.
- Proofs of Loss signed May 14, 2007 stated May 2006 hail and CAT 71; U.S. Fire paid $5M by June 2007, then remaining $2M in 2007 as part of the single occurrence limit.
- Trial court granted Lynd partial summary judgment on breach of contract against U.S. Fire, RSUI granted take-nothing; court later awarded statutory interest and fees after bench trial.
- Appellee motion for rehearing granted; court substituted its opinion, reversing Lynd’s summary judgment against U.S. Fire and RSUI on breach of contract and remanding for further proceedings, while affirming 18% Chapter 542 interest on the May 2006 payments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| whether summary judgment was proper given a material fact issue on single vs multiple storms | Lynd argues CAT 68 caused all Mandalay and 50% of Oak Hollow | U.S. Fire contends fact issue exists; evidence supports May 2006 CAT 71 as sole cause | Material fact issue precludes summary judgment against U.S. Fire |
| interdependence of Lynd and RSUI judgments on same record | RSUI’s judgment depends on Lynd’s evidence; should be reversed together | Separate judgments could yield inconsistent results; Turner exception applies | RSUI judgment reversed and remanded; cross-appeal moot |
| award of 18% statutory interest under Chapter 542 on May 2006 claim | Lynd plead and proved Chapter 542 violations; interest proper | Challenge to timing and notice; evidence insufficient for $5M portion | Affirmed 18% interest on May 2006 payments; remanded other issues |
Key Cases Cited
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (summary judgment requires no genuine fact issue)
- Turner, Collie & Braden, Inc. v. Brookhollow, Inc., 642 S.W.2d 160 (Tex. 1982) (interwoven rights may require entire judgment reversal)
- In re Prudential Ins. Co. of Am., 148 S.W.3d 124 (Tex. 2004) (admission by signing instrument; admissibility in summary judgment)
- Lyons v. Millers Cas. Ins. Co. of Tex., 866 S.W.2d 597 (Tex. 1993) (lay testimony can establish causation in insurance cases)