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Carter v. Allstate Insurance Co.
962 S.W.2d 268
Tex. App.
1998
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*1 tiоns taken in June 1993. The indictments against appellees both were returned on Jesse CARTER and Jesse 12, appellees’ applications June 1996. In Thomas, Appellants, corpus, they

writ of habeas acknowledged aggravаted perjury that degree third felony under Tex. Pen.Code Ann. 37.03 COMPANY, ALLSTATE INSURANCE (Vernon 1994). statutory But for a excep Appellee. tion, aggravated perjury would fall within the three-year statute of limitations under Tex. No. 01-96-00071-CV. 12.01(6) (Vernon Code Crim. P. Ann. art. Supp.1998). However, Texas, specifi Appeals article 12.01 Court of cally “[ejxcept provided (1st Dist.). states as in Article Houston 12.03,” provides “any which that offense that 5, Feb. ‘aggravated’ bears the title carry shall period same primary limitation as the crime.”

Because the pri statute of limitations of the offense,

mary perjury, misdemeanor is two

years, the aggra same limitation obtains for perjury,

vated though felony. even it is a agree.

We dealing

Three recent cases with the statute aggravated penury limitations for have period

held that the years. limitations is two Matthews, parte

In Ex the Court of Criminal stated, dicta,

Appeals albeit in “[i]n the ‍‌‌​​​‌​​‌​‌‌‌​​​‌​‌‌‌​‌‌​​‌‌‌‌​‌​‌​‌‌​​​​​​​​​​‌‍aggravated, perjury period

stant cause of years, being period

is two the same as 12.03(d) (an

perjury. Article offense titled

“aggravated” carries the pe same limitation crime).” primary parte

riod as Ex Mat

thews, 134, 933 S.W.2d 136 (Tex.Crim.App.

1996) (emphasis in original). The San Anto appeals

nio court of held that the statute of aggravated perjury

limitations for was two

years, citing parte parte Ex Matthews. Ex

Zain, 253, (Tex.App. 940 S.W.2d — San 1997, pet.). Antonio no The Waco court of

appeals holding echoed that in Deckard v.

State, (Tex.App. — Waco pet.). agree no We with these authori although

tiеs the statute of limitations felony aggravated perjury

for the offense of

is inconsistent with that of most other felo 12.03(d)

nies, nonetheless, unambigu article believe,

ously says. means what it We do not argues,

as the State that the result is absurd. Matthews, parte

See Ex 933 S.W.2d at 138- (Baird, J., concurring). judgments affirm the

We of the trial court. *2 Chalker, Houston, Appellee,

Wilton TAFT, WILSON, MIRABAL and Before JJ. ON MOTION

OPINION REHEARING FOR TAFT, Justice. rehearing

Appellee has filed a motion for motion, deny but with- this case. We one previous opinion draw our and issue this Appellants, in its Jesse Carter and stead. Thomas, Jesse had an auto accident with Appellants sued ‍‌‌​​​‌​​‌​‌‌‌​​​‌​‌‌‌​‌‌​​‌‌‌‌​‌​‌​‌‌​​​​​​​​​​‌‍Allstate Allstate’s insured. alleged for failure to honor oral settlement agreements. We determine whether applies preclude Statute of Frauds en- presuit forcement of an oral agreement. and We reverse remand.

Facts car collided in- Appellants’ with Allstate’s Appel- sured’s car on November attorney Joseph lants hired Onwuteaka to injuries represent them in their claim fоr April from the automobile collision. On 1994, Mr. sent a demand letter Onwuteaka appellants’ to All- for settlement of claims adjustor, Weatherly. state’s Mr. On- Gracie made, Weatherly and he wuteaka claims Ms. accepted, agreements oral settlement on be- appellants. half of When Allstate did not agreements, appellants suit honor the filed 30, 1995, May contract. on for breach of summary judgment Allstate filed for based (1) (2) Frauds; acceр- on: of no valid Statute (3) withdrawal; no tance of offer before “meeting agree- an of the minds” form Weatherly’s af- ment. Allstate attached Ms. stating appellants that neither nor Mr. fidavit accepted any agree- Onwutеaka Appellants response a ar- ment offers. filed guing inapplicable of Frauds was the Statute acceptance meeting and the issues of questions jury the minds were of fact for the Appellants to decidе. attached Mr. Onwut- 28,1994, April stating that on eaka’s affidavit Weatherly specific had made offers for Ms. Onwuteaka, Houston, orally accepted. Joseph Appel- appellants both which he had 5, 1995, granted trial court lants. On October summary judgment stating particu- without Statute of Frauds lar basis. error, point second alleged contend the is

Summary Judgment Standard governed by the Statute of Frauds. All appellate The standard for review state claims the applica Statute of Frauds is *3 summary judgment alleged agreement of a ble to the promise for a as “a defendant is by person debt, another to answer for the summary judgment whether the proof estab default, miscarriage person.” or of another lishes, law, aas matter of that there is no 26.01(b)(2) § Tex. Bus. & Ann. Com.Code genuine issue of fact toas one or more of the (Vernon 1987). provision This of the Statute plaintiffs essential elements of the causе of commonly of Frauds is referred to as the action. Corp., Gibbs v. General Motors 450 “suretyship provision.” E. Allan Farns (Tex.1970). 827, summary S.W.2d 828 A worth, (2d ed.1987). 6.2, § Contracts judgment disposes for a defendant that of if, proper only the entire case is as a matter determining One test for whether a law, plaintiff of the upon could not succeed promise pay to the debt of another is within any petition. of the in theories its Bhalli v. or without the Statute of Frauds is whether (Tex. 207, Hosp., Methоdist 896 S.W.2d 209 promisor surety, the only secondarily is a denied). liable, App. 1995, accepted or primary responsibility [1st Dist.] writ has — Houston for the appeal Liquid In an debt. Fertilizer v. summary judgment, from a Co. the Gulf Titus, 260, 378, 163 Tex. 354 S.W.2d 382 standard presumptions of review аnd favor (1962); Tex. Bus. & Com.Code Ann. judgment. reversal of the Nixon v. Mr. 26.01(b)(2). liable, § party primarily If the is Co., Property Management 546, 690 S.W.2d promise pay required its to a debt is not to (Tex.1985). 548-49 writing by inbe the Statute of Frauds. See If a summary defendant moves for Howevеr, Liquid, 354 at 382. if S.W.2d Gulf judgment defense, based on an affirmative party surety, promise pay the is a the to the the prove defendant’s burden is to conclu party required debt of a third is to in be sively all the of elements the affirmative writing. Id. defense ‍‌‌​​​‌​​‌​‌‌‌​​​‌​‌‌‌​‌‌​​‌‌‌‌​‌​‌​‌‌​​​​​​​​​​‌‍as Montgomery a matter of law. portion The relevant of the insurance con- (Tex.1984). Kennedy, 309, 669 S.W.2d 310-11 appears Weatherly’s tract within Ms. affida- conclusively Unless the movant establishes vit: defense, the affirmative the non-movаnt pay damages bodily injury We will or plaintiff has no in response burden to a mo property damage any for which covered summary tion for judgment filed on the basis person legally responsible becomes be- of an affirmаtive defense. Torres v. Western Property cause of an auto accident. dam- Co., (Tex. 50, Casualty & Sur. age damaged includes loss of use of the 1970). defend, property. willWe settle or as we appropriate, any consider claim or suit Agreement Existence of Oral asking damages. for these error, appellants’ point first of only responsibility Had Allstate assumed to granting contend the trial court in erred pay damages its whenever insured became summary judgment Allstate’s motion for be legally responsible, it would have assumed genuine cause there is a issue of material fact surety. the role of a Allstate When took the agreement. as to the existencе an oral As initiative to settle the claim for which its above, parties’ summary judg set out yet legally responsi- insured had not become ment evidence conflicts about there whether ble, however, settling only it was its accеptance of Allstate’s offer to settle potential liability possi- insured’s but its own appellants’ Accordingly, claims. we hold obligation pay duty ble and its own to genuine there is a issue of material fact promise defend its insurеd. The oral to set- precluding summary judgment regarding ac original undertaking, prom- tle was an not a ceptance meeting before withdrawal and ise to answer for the debt of the insured. point Therefore, the minds. We sustain first suretyshiр provision apply of error. of Frauds Statute does not Allstate’s promise Klag to settle. Agreement See v. Home Ins. 26.01. Promise or Must be Co., Ga.App. 158 S.E.2d 451-52 In Writing (1967) (holding promise insurer’s oral to set- (a) promise agreement A or described in original tle a claim was an undertaking and (b) Subsection of this section is not en- writing).1 need in not be promise agreement, forceable unless the or it, argues or a memorandum of underly the rationale is ing applicablе Tex.R. Civ. P. is (1) to this writing; case, making agreement (2) by signed person charged to be disagree. unenforceable. We In Estate of promise by with the or or McMurrey, Pollack v. Supreme the Texas lawfully someone sign authorized to attesting Court held that affidavits to an oral him. settlement were sufficient evidence of the (b) (a) applies Subsection of this section to: to establish a meritori *4 (Tex. ous defense. 858 S.W.2d 392-93 (2) promise by person a one to answer for 1993). рlaintiff argued The had the debt, default, miscarriage the or of another writing, settlement and person. therefore unenforceable under Tex.R. P. Civ. 11; Pollack, 858 S.W.2d at 393. The court In liability the context of automobile insur- held that the ance, was en pays premiums an insured in return for forceable, because applies only rule 11 to company’s agreement the pay insurance to agreements suit, concerning pending a and for certain presеnt covered losses. In the apply does not to a preexisting agreement case, policy the insured had a with Allstate Pollack, asserted as a defense to a suit. Company provided, Insurance in part: S.W.2d at 393. рay damages bodily We will [Allstate] We presuit hold that a oral settlement injury property damage any or for which agreement between an insurer and the claim- person legally responsi- covered becomes against ant its insured is not rendered unen- ble because of an auto accident.... We by forceable Tex.R. Civ. P. 11 or the Statute defend, will settle or appro- as we consider of Frauds. We sustain second priate, any asking claim or suit for these point of error. damages. Allstate’s insured in an was involved auto Conclusion accident. The insured’s car collided with We reverse the summary trial court’s car, occupants another and the of the other judgment and proceed- remand for further against car threatened suit the insured for ings. damages. process In presuit negotia- the tions, orally money offered a sum of MIRABAL, J., dissents. alleged to miscarriage answer for the of its MIRABAL, Justice, dissenting on motion my opinion, “promise insured. In Allstate’s rehearing. pay” clearly promise by constituted “a one debt, person to I answer for the default or dissent. miscarriage person.” of another upon areWe called to construe the mean- 26.01(a) ing Supreme of Tex. Bus. & The Com.Code Ann. Texas Court has made it (b)(2) (Vernon 1990), and which legal reads: clear that there is no relationship be- dissenting opinion 1. The guage third-party relies on Allstate Insur to allow claimants to have such Watson, (Tex. Company ance v. 876 S.W.2d 145 a cause of action based on extra-contractual obli- 1994). Watson, the issue was whether an gations because lacked both contractual the practices action for unfair claim settlement could relationship special relationship and of trust with brought against by third-party be an insurer a the insurer which had formed the basis of the Noting claimant. already Id. at 149. that case law had Watson, case-law extension for insureds. statutory ‍‌‌​​​‌​​‌​‌‌‌​​​‌​‌‌‌​‌‌​​‌‌‌‌​‌​‌​‌‌​​​​​​​​​​‌‍language extended to allow an S.W.2d at 149. Here the issue is what kind of insured to have a cause of action for unfair claim relationship contractual into which the insurer 21.21, practices under article section presuit promise entered when it made a to settle (Vernon Supp. Texas Insurance Code a claim. 1998), statutory the court declined to extend lan- third-party and an insurer. tween a claimant Watson, Company

In Allstate Insurance (Tex.1994), Supreme analyzed relationship the nature of the

Court third-party an insur- claimant and

between company,

ance concluded: party

A third claimant has no contract insured, insurer or has not

with the any premiums, legal relation-

paid has no relationship

ship special the insurer or

of trust with insurer. at 149.

Id. relationship any legal

In the absence compa- appellants

between and the insurance case,

ny present the insurance in the how can appellants,

company “primarily be liable” to mаjority respectfully I submit

as the holds? majority has erred. 26.01(a) (b), All-

According to section *5 if verbal- pay, even

state’s

ly accepted by appellants, is not enforceable writing not in

because Therefore, I signed.1 would overrule two,

appellants’ point of error and affirm

summary judgment. Formerly CO., INC., E

E L CHIPPING & Lowery Co., Inc., Lester L Lumber & “Buddy” Lowry, Appellants,

and Elvin COMPANY,

The HANOVER INSURANCE Company, Lloyd’s

Hanover Insurance Company, and

The St. Paul Insurance Inc., Companies, Paul

The St. Insurance

Appellees.

No. 09-96-232 CV. Texas, Appeals

Court

Beaumont. 30, 1997. Oct.

Submitted

Decided Feb. reliance problem or other detrimental tions it is 1. I note that uncontroverted statute of preclude applicability ‍‌‌​​​‌​​‌​‌‌‌​​​‌​‌‌‌​‌‌​​‌‌‌‌​‌​‌​‌‌​​​​​​​​​​‌‍eight days after would its oral offer to settle withdrew limita- frauds. made. no statute of offer was There is

Case Details

Case Name: Carter v. Allstate Insurance Co.
Court Name: Court of Appeals of Texas
Date Published: Feb 5, 1998
Citation: 962 S.W.2d 268
Docket Number: 01-96-00071-CV
Court Abbreviation: Tex. App.
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