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Trinity Universal Insurance v. Bleeker
944 S.W.2d 672
Tex. App.
1997
Check Treatment

*1 TRINITY INSURANCE UNIVERSAL

COMPANY, al., Appellants, et BLEEKER, Appellee.

Ronnie Dale

No. 13-95-075-CV. Texas, Appeals

Court of

Corpus Christi.

Feb. 1997. May

Rehearing Overruled *2 Chasnoff, Hankins, Barry proper into evidence of an exhibit A. Winston H. admission Ester, Akin, Strauss, Polly Gump, consisting of a criminal Jessica letter Bleeker’s Feld, Antonio, MaGuire, Vittitoe, lawyer, Craig Hauer & San amicus curiae. Michael liability lawyer underlying from the Bleeker’s Wrotenbery, Magenheim, J. Preston Bate- recovery argue that all case. man, Robinson, Helfand, Wrotenbery & *3 in this case must be denied because Houston, Camp, H. Harman & Selman always has maintained his satisfaction with McAllen, Jr., Camp, Lopez, R.E. Christiana Trinity, can so a case his insurer not Brownsville, Townsend, Dijkman, Roger Jen- brought in his name his wishes. be Holman, Hogan, Hogan, nifer Bruch Dubose possible DTPA violation for On the issue of a Townsend, Dubose, & William J. Kevin failure to inform the insured of settlement Jaworski, Houston, Boyce, Fulbright & for offers, appellee appellants have contends that appellants. right complain about the waived their Christi, Constant, Anthony Corpus Phil F. by failing to a submission of this issue make Harris, Davila, Weslaco, Corpus Frank G. objection timely Appellants at trial. claim Christi, appellee. for error, they preserve deny they did duty DTPA to their owe a under the inform SEERDEN, C.J., YÁÑEZ Before and and offers, argue of the settlement insured CHAVEZ, JJ. attorney’s that the court erred its award they did not Appellants fees. OPINION duty, the since the settlement breach CHAVEZ, Justice. rejected by offers would have been a reason- This case evolves out of an insurance com- ably prudent person, jury’s and that the find- pany’s conduct when confronted with settle- damages supported by legally on was not arising colli- ment offers from automobile factually sufficient evidence. jury Trinity sion. The found that Universal duty deny parties can a that third assert (hereafter al., Company, “Trini- Insurance et process good faith either claims under ty” “appellants”) had breached their Stow- Further, DTPA law. the or the common insured, duty on ers to settle behalf of their duty appellants argue that even if such a Bleeker, DTPA, Ronnie Dale the violated exists, legally factually evidence was duty good and breached a common law under the insufficient to such a claim dealing. damages were faith and fair Actual brings facts of this case. one cross- $12,836,- against appellants assessed point, alleging that it error for the trial 976.75, DTPA pursuant and trebled to the jury charge judge to exclude from the fees, $38,510,930.25. figure Attorney’s finding unconscionability on request for a on represent judgment, intended to 50% of the Trinity. part part We reverse $38,510,930.25, were added in the amount of pro- further part affirm in and remand for $77,021,860.50. for a total ceedings. appeal note the on

We will issues First, ap- order in which we address them. Background Factual they pellants contend that did not breach early morning July receipt a valid settle- In the hours created driving they Dale Bleeker was his ment because never received a Ronnie offer Next, appellants com- Blazer northbound Interstate valid settlement offer. Chevrolet Texas, Highway Georgetown, while plain regarding allegedly im- 35 near of error manage- prudent person in the would exercise 1. G.A. Stowers Furniture Co. v. American Indem- Co., business; nity (Tex.Com.App.1929) ordinarily and if an ment of his own care, held that "where an insurance makes ordinary prudent person, in the exercise of it, contract, very terms such assured, standpoint of the as viewed from the contract, responsibility to act as the assumed the case, and failed or refused would have settled agent absolute of the assured in all exclusive and so, agent, which in this case is to do then pertaining questions litigation, matters respond indemnity company, in dam- should and, ought agent, held to that as such it to be ages." diligence ordinarily degree which an of care and your families, Kelly, so that insured as Allstate v. influence of alcohol. Two under the Ochoas, put at risk. were travel- the Villarreals and pickup truck and ling together to Illinois into the Trinity deposit funds did highway to pulled the side of the had court, thirty within the registry of the either strayed change vehicle drivers. Bleeker’s Villegas did tell day period or later. road and struck the rear from the for full they like to settle the case would killed, parked truck. Filiberto Villarreal parties all could policy limits if a release from other members of the two and the thirteen arrange- part of the settlement secured as injured, many seri- all of them families were Trinity did not contact Bleeker ment. ously. Villegas’s or the oral settle- discuss letter expiration offers. After ment liability insur- possessed an auto offer, repre- Villegas took on the County Insurance ance from Southern *4 remaining and the of the Ochoas sentation law, by Company required minimum for the family. pro- He members Villarreal $40,000 $20,100 per accident. per person and Bleeker, against ceeded with the case Trinity reinsured Southern Coun- Universal entered January 1994 a was ty’s claims. Bleek- policies and handled their exceeding damages against Bleeker for $11 insurance had no assets other than the er subsequent proceeding, million. In a policy pay damages assessed with which plaintiffs acquired turn over of Bleeker’s against him. The Villarreals and the Ochoas compa- action his insurance cause of bills, quickly incurred medical substantial 1994, ny. July this suit was filed In treating the hospitals and the that had been against Trinity, resulting in name Bleeker’s $40,- families attached liens in excess of the $77,021,860.50. for thirty days policy limits within 000 collision. Adequacy of the Oral Offers The and the Settlement Demand represent Villegas was hired to Ida-

Albert children, lia and her minor as well Villarreal parties dispute whether Villegas as estate Filiberto Villarreal. by testified to Ville- oral offers of settlement repeated testified that he made oral offers duty. gas to activate a Stowers are sufficient represented settle the claims of the clients he contro Appellants presented no evidence to $20,000, reject- for as little as which were all offers, testimony Villegas’s as to the oral vert Eventually containing an ed. he sent a letter they argued ap at trial and here rather exchange interpleading offer to settle in offers should be writ peal that settlement $40,000. This offer stated that it would ex- duty. trigger Appellants ing to Stowers thirty days. Although Villegas pire in of Civil rule 11 of the Texas Rules refer to represent and the later hired to Ochoas position. for their Procedure as Villarreals, Amalia, remaining Victor and he requires 11 misplaced. Rule This reliance lawyer at the time the letter was not their writing, agreements that settlement letter, At the time of the he had was sent. writing. inbe Gener that settlement offers hospitals regard- not been contact with the by governed ally are speaking, settlements liens. The letter stated: their v. Ken principles of contract law. Shaw 240, (Tex.App. nedy, 247 —Amar hereby policy full ... I make demand for Mathes, 1994, writ); 528 illo no Stewart my As there limits on behalf of clients. 116, (Tex.Civ.App. 118 S.W.2d —Beaumont claimants, can be are other such demand writ). law, 1975, contract oral Under policy limits into by depositing met the full same extent as written are valid to the offers Hidalgo, Registry of the Court offers. County, the District Clerk. Texas with no evi Appellants argue that there is deposited If funds are not within such (30), Trinity afforded a reasonable dence that thirty days proceed we will offers, required as damages. to evaluate the oral your trial full time client to and seek American Physicians. See American aware of the Stowers doctrine You are Garcia, Exchange v. Physicians Insurance your as well responsibility insured 676 694, (1942); 50 Villegas 139 Tex. (1986). Trinity § oral before Liens Until testified that he made the offers Tex. Jxm.3d There was limits to the

submitting actually paid his written demand. some of the accepting deadline for full lim- hospitals, Trinity no evidence retained the imposed pri- offers was Villegas’s settlement in excess hospital its. The existence of liens Appellants ac- or to the written demand. not excuse them limits does knowledge that written offer afforded duty imposed by to re- from the Stowers Trinity a time to evaluate the reasonably reasonable spond to offer as would a Clearly, the oral offers that were offer. person. prudent the written offer and without made before the oral offers to We conclude that both gave their own imposing deadline of $20,- Villegas’s clients for settle the claims time to evaluate them. a reasonable to settle inter- 000 and the written offer Appellants that Ville- $40,000 considered in this pleading must be gas’s does not initiate Stowers letter case. of claims it did not mention a release because authority, they quote against Bleeker. For Admissibility Letter of the MaGuire Physicians, wherein the Texas Su

American allege in the ad error preme “[A] Court said copy of a plaintiffs exhibit mission the insured promise demand must to release Ma 1992 from Michael letter sent June *5 exceeding fully exchange a sum not for” counsel, Guire, to Bleeker’s criminal defense policy Id. The intention of Ville- limits. Honey Trinity. of This letter was Kattie Trinity to gas’s to offer a settlement letter during by appellee offered into evidence testimony Villegas expert offered was clear. Vittitoe, Craig Bleeker’s of the examination for full phrase in his letter “demand that complains that its civil counsel. now in the field of policy limits” indicates to those hearsay objection improperly at trial was policy “I all of the insurance law that want argues proper that a overruled. my of clients because of limits on behalf made, objection hearsay never was give you damages got going I’m I’ve is admissible. thus the exhibit language of that the release.” He testified objection hearsay proper that a language he had We believe the letter was similar to objection arguing years practic made. In its throughout fourteen used his “I judge, Trinity’s counsel said don’t injury Ap trial personal in the area of law. prove up. it I probably can expert testimony of their think that he pellants presented the docu- language don’t think he can authenticate asserting that this does not own “proving it counsel refers to being offered. How ment.” When mean that a release is “authenticating he is ever, up” and the document” Villegas specifically mentioned the arguing exceptions to the hear- clearly doctrine in his letter. reference Stowers say apply. rale do not sequitur placed unless exclusion is a non Stowers part of a release as the context of an offer un court admitted the document The trial that a letter sent to a settlement. We hold exception to the der the “business records” making a “demand an insurance R. Civ. hearsay exclusion rule. See Tex. mentioning the policy full limits” and 803(6). of a trial Appellate review Evid. propose a be understood to doctrine should gov judge’s to admit evidence decision settlement. by standard. an “abuse of discretion” erned Attic, 527, 531 Tracy the hos v. Annie’s Appellants also denied); 1992, (Tex.App. Tyler writ Jones already at pital existence liens which were — Jones, (Tex.App.— already Villegas’s offers and ex the time of denied). The trial Corpus offer Christi writ policy prevented limits ceeded the the exhibit judge based his decision to admit Villegas being within limits. from from testimony letter had impact of liens. on Vittitoe’s argument mistakes the This regular in the received ownership. been recorded as A not confer actual hen does firm, and that it by his law Wyatt, Ass’n v. course business Bldg. Bankers Home & Loan against his insur- brought in name according Bleeker’s in the case file had been retained essentially arguing Trinity is company. ance practices. knowl- regular business With not have been facts, order should it that the turnover edge we hold that was of those However, turnover order is judge granted. for the trial abuse of discretion Appellant’s this case. If the part of the admit the letter into evidence. challenged on alleging Maguire let- to be point of error turnover order was opposed improperly grounds admitted is overruled. claim was ter was that the Stowers Bleeker, been by that claim should have Testimony Trinity’s turn- appeal as to as an Bleeker’s made Handling order, of His Case not done. over which was recovery argues that all Appellant indicate testimony also fails to Bleeker’s because Bleeker must be denied this case his attor- agreement with the same level Trinity’s agreed pursuit with testified that he expressed neys insurers that was part as complete parties of a release of all completion deposition In after the Tamez. agreement. In liability assessing his for the of the trial v. Ta argument, appellants this cite Charles accident, repeated- Bleeker was asked traffic mez, (Tex.App.— 208-09 preferred to obtain ly whether he would have denied). Corpus writ be Christi surprisingly, he parties. of all Not release the facts of Charles v. Tamez distin lieve “yes,” and “that would be best.” answered began guish it this ease. That case in a asked, while the was never either Tamez, whose similar fashion to this one. during later open or his settlement offer was only assets were an insurance with approve of the deposition, whether he would $20,000, responsible for a traffic limits of offered, asking his insurer was settlements parties agreed that his accident. All the $20,000 poli- interpleader of the either for $20,000. liability well exceeded Tamez’s law some, exchange cy for a release limits yers a settlement offer for the refused contrast, all, plaintiffs. In but not *6 offering plaintiff because the was not a limits in challenged the turnover order Tamez potential release from all claimants and the not have and stated that he would court hospitals plaintiff’s that held liens. The set offer that accept to the settlement wanted expired plaintiffs tlement offer and the sued attorneys. As there is presented to his negligence in the traffic acci Tamez for his challenged or Bleeker ever no evidence that $180,000. dent, obtaining judgment As a for of action opposed the turnover of his cause judgment pay Tamez was unable to the from insurers, hold that Charles v. against his we resources, plaintiffs sought to his the own case, not control this and decline Tamez does compel Tamez to turn over his cause of ac judgment grounds. the on these to reverse lawyers tion his under the Stowers failing accept settlement doctrine for to the Object Properly for Failure to Waiver turnover, stating the opposed offer. Tamez accept to the that he would not have wanted appel Appellee also contends that offer, was denied turnover right complain about their to lants waived public policy the tidal court. Because question two. See Allen the DTPA claim relationship the between law concerns about Co., 380 S.W.2d 604 v. American Nat'l Ins. clients, to the yers and we refused reverse (Tex.1964) objec (judgment upheld when no a judgment and order turnover of a submission of tion is made to defective to assert claim when the client refused issue). any controlling Appellee describes with his at claim and denied dissatisfaction theory misrepresentation as mere in his flaw Id, torneys. at 206-09. argues that He ly a defective submission. Spencer Eagle Star Insurance Com case, opposed the under In this Bleeker never (Tex.1994), pany, 876 S.W.2d appeal order. No was taken turnover jury finding on a defective sub order, argument and this is affirmative the turnover pre statutory cause of action com- mission of a urged the first time after the being notwithstanding judgment the verdict cludes trial on the Stowers ease pletion prove a offered to vital judgment ver- the evidence requires “[w]hen either a on the than create weak as to do no more granting of a trial. fact is so dict or the new existence, suspicion or of its a mere surmise Rules of Civil Proce- Rule 279 of the Texas and, more a scintilla the evidence is no than claim that evidence was “[a] dure states that effect, legal is no evidence.” Kindred v. legally factually insufficient to warrant the or (Tex. Inc., Con/Chem, any may made for question submission 1983). judgment on factual We reverse the first time after the verdict.” Tex.R. Civ. is so sufficiency only when the evidence weak objected during at trial P. clearly wrong and the verdict as render conference, their charge and reiterated Bain, unjust. manifestly Cain v. objection in motion for notwith- 175, 176 standing and a motion to disre- the verdict objection ques- gard jury findings. The DTPA, as portions The relevant charge conference during two made tion and Commerce codified in the Business law, question this stated “as a matter Code, portions incorporate of the Insurance type Appel- not recoverable in this case.” regulations: Code and relevant jury findings disregard lants’ motion may an action where A consumer maintain argued support that “there is evidence” following producing constitute a findings question two. This jury’s under damages ... cause of actual appellants’ mo- argument was also made (4) by any per- employment the use notwithstanding the ver- tion for practice in of an act or violation son Accordingly, appellants hold that dict. we Code, 21.21, as Texas Insurance Article challenge preserved on their rightfully error amended, is- regulations rules and sufficiency legal of the evidence un- Board of Insurance sued the State question findings under two. Code, 21.21, Article Texas Insurance der as amended. for the Failure Appellee’s DTPA Claim to Inform the Insured 17.50(a) (Ver- § Tex. Bus. & Com.Code Ann. appellants’ contends 1987). Article 21.21 Code non Insurance of the settle failure to inform their insured 16(a) grants § cause of action to: They DTPA. ment offer was violation injured by Any an- person who has been question jury on this that because engaging practices other’s 2D, issue, language from number borrowed Article or of this declared Section statute, required to the trial court was *7 adopted by lawfully regulations or rules plaintiff when the render Article to be unfair Board under this Appel finding. jury returned an affirmative de- competition and unfair and methods of duty, they had no either lants contend that practices acts or the business ceptive otherwise, to inform Bleeker of statutory or ... insurance offer, and that the evidence the settlement 16(a) § 21.21 Ann. Article Tex. Ins.Code prove factually legally insufficient to was and 1981). (Vernon DTPA alleged of the that the violation damages. Bleeker’s producing cause of in Article practices defined None of the compe- methods of sufficiency 21.21 section 4 as “unfair legal chal- we review a When in- deceptive acts” are and unfair or only the evidence and tition lenge, we consider The Insurance finding in this case. State support a on volved that would inferences practices supplemented the list of Board has disputed point disregard all evidence and Weirich, regulations 4 of 21.21 with 833 in section article contrary. v. to the Weirich Administrative (Tex.1992); subehapter of the Texas States Southern S.W.2d State, Competition and Unfair 640 Code titled “Unfair Transp., Inc. Misrepresentation supported by Practices of Insurance finding If the is § 21 evidence, 28 Tex. Admin. Code of Policies.” then we overrule the probative 1995). (West portion from that A definition finding. Southern point uphold ap- However, Code was of the Texas Administrative at 640. Transp., 774 S.W.2d States denied). However, case, no 2D(3) in this jury charge. The writ question plied the failure to Bleeker from damages resulted regulation provides: Ap- offers. to inform him of the settlement ‘misrepresentation’... is de- term [T]he that no evidence to show pellees have offered any following acts or omis- fined as Bleeker of the settle- the failure to inform (5) any disclose a matter sions: failure to producing cause of ment offers was the by law to disclosed ... required only damages. Appellees Bleeker’s 1995). 21.4(5) (West § Tux. Code Admin. accept- offer had been that if the settlement “any jury question took the failure to ed, damages award would the excess then required by dis- matter law to be disclose a Regardless the merit have been avoided. regulation’s definition language of the closed” assertion, it does establish of that of an offer to “the existence and inserted informing Bleeker of the settlement simply required law to be settle” as “a matter enough prevent the have been offer would jury question asked: disclosed.” forms the basis excess knowingly en- Did the insurance minimum, appel- damages. At a Bleeker’s gage any deceptive unfair or act informing Bleeker prove that lees needed to practice in the business of insurance which to the offer would have led of the settlement Judg- Final producing cause of the they This failed to do. being accepted. offer ment? trial, following the During deposition his deceptive practice” act or “Unfair or he would was never asked whether following: any of the means accepting a settlement like the have favored Making any misrepresentation re- D. nothing proposed by Villegas. There is one lating “Misrepresenta- to insurance. testimony that he to indicate Bleeker’s any following: tion” means accept Villegas’s offer. would have wanted any 1. failure to state a material fact testify relying on the Bleeker did that he was necessary prevent the statements rejecting lawyers, advice of his who favored being misleading, made from when these only Appellee’s evidence the offer. light statements are considered accept would have wanted to Ville- they are the circumstances under which Maguire is the letter. gas’s settlement offer made; or letter, has In states that he MaGuire making in such a 2. statement Villegas with Bleek- discussed an offer from manner or order as to mislead reason- Appellee points portion er. ably prudent person to a false conclusion (MaGuire states “if we letter where MaGuire fact; of a material Bleeker) (of Villegas’s been informed had the failure to disclose the existence of offer) agreed have to it.” we would settle; offer However, portions from other it is clear parts of the definition cannot The first two mention, letter, appellee does which judgment in this case. be relied on for the un- opinion at that time was that MaGuire’s present evidence re- failed acknowledges that he is informed. MaGuire any misleading by Trini- garding statements *8 truth of familiar with the “personally not allowed ty, or failure to state facts which have claims and do not Villegas’s facts and/or only misleading. to be The other statements knowledge April of 16.” personal of the letter supported part of the definition that could be Later, Maguire the actual text when saw presented in this case deals the evidence 16, letter, changed his April 1991 he the three, part “failure to disclose the exis- with that he felt the settle- position and indicated of an offer to settle.” tence accept- not be it contained should ment offer testimony that he recognized fail ed. Based on Bleeker’s courts have that the Texas counsel, we follow the advice of preferred a to ure to disclose the existence of settlement acquiesced presume that Bleeker would have may of the DTPA offer constitute violation changed advice and would n. Physicians, 876 at 847 with MaGuire’s American S.W.2d Harrison, accept the settlement 11; to Griggs not have wanted Ecotech Inc. v. & Int'l Antonio (Tex.App. 649 offer. —San 680 Physicians,

There is no evidence that Bleeker would in contravention of American (Tex.1994). accept have wanted to the settlement offer if 849 That case it, rejected position that “insurers rather he had been informed of and therefore no the duty appellants’ than claimants have a to make settle- causal connection between failure ment offers.” Id. at 851 n. We do not to inform him of the settlement offer and the agree requiring “negotiate” insurers to excess entered Bleeker. necessarily they requirement includes a appellants’ point pertain- We sustain of error initiate settlement offers. legal insufficiency to the of the evidence support appellee’s to claim the DTPA under authority from There is other the Texas for failure to inform the insured of settle- indicating jury Supreme Court that a instruc- ment offers. including phrase duty to tion the “the settle implies duty negotiate” appropriate. the to is

Attorney’s Fees Guin, Ranger County See Mut. Ins. Co. v. In that case S.W.2d attorney’s premised The award fees was jury jury the instruction that considered DTPA claim. the Since we have reversed very similar to the one used this case of the trial court on that issue duty and contained the sentence “The to appellants and hold that to were entitled implies duty negotiate.” settle The claim, attorney’s recover on the DTPA given by court said instructions “[t]he proper. point fees are sustain the We properly explained upon trial court the basis alleging error error in the award of attor- jury negligence which the could find a case ney’s fees. type.” of this Id. find no error in the duty implies instruction to settle “[t]he The Stowers Claim duly negotiate.” jury returned a also verdict argue that the evi support appellee’s Ques Stowers claim. factually jury charge legally tion 1 of dence was insufficient to language lifted directly finding from an affirmative on this issue. Stowers:

Villegas offered settlement his clients exchange depositing policy Question limits of NO.l $40,000 registry into the of the court for an company’s Was the insurance failure to interpleader proceeding. this action While negligence proximately settle which caused prevented any claimant from would have Judgment? the Final suing directly, pre it would have means the failure to ex- “NEGLIGENCE” taking portion vented claimant degree diligence ercise that of care and submitting limits without ordinarily prudent person which an would 43; interpleader proceeding. Tex R. P. Civ. management exercise of his own see, Am. Reserve Ins. Co. v. Sand e.g. Great responding business in de- (Tex.1975) (insur ers, mands, any, if within the insurance company facing multiple ance claims for limits. policy proceeds may use same life insurance ordinarily prudent person If an ex- interpleader liability to to limit its face ordinary ercise of care would have settled policy). limits amount Once settle, by accepting the ease an offer to but for, was, spoken by all ac were the insurance failed or refused to counts, so limited in his own financial re so, company negli- do then the insurance judgment proof. sources as to be Under gent. implies duty settle circumstances, likely highly these it is negotiate. *9 content all the claimants would have been First, appellants argue that the trial court with a share of the disbursement interpleader pro instructing jury duty through limits the “[t]he erred in the that liability duty negotiate.” Ap- ceeding pursue rather than a futile implies to settle the argues imposes against a Bleeker after the limits pellant that this sentence ease However, offers, gone. by refusing to tender duty on insurers to make settlement were Unconsdonability on registry of the court Cross-Point policy limits into the the manner, Trinity left the claimants timely in a single cross-point, brings a directly. no alternative but to sue Bleeker judge error for the trial arguing that it was Appellants argue that there is no evidence jury an issue to the to refuse to submit support including the claims of those unconsdonability under the regarding the represented by Villegas at the time of unconscio of a DTPA DTPA.2 The elements offers in the calculation of dam- 1) plaintiff is a consum nability claim are ages resulting Trinity’s breach 2) er, of act or course an unconscionable However, duty. Villegas testified 3) Stowers unconsciona by any person, and action advantage if had chosen to take producing action is a act or course of ble interpleader process the excess dam- damages. v. plaintiffs Miller cause of award, ages including claims of all the Soliz, (Tex.App. 648 S.W.2d —Cor claimants, would have been avoided because writ). An pus no “unconsciona Christi inability pay claims be- of the Bleeker’s is “an act or action or course of action” ble yond policy. (A) the limits of his insurance which, person’s to a detriment: practice knowledge, advantage of the lack of takes hold that there is some evidence person to capacity or of a ability, experience, ordinarily person in prudent an the exercise degree.” Tex. Bus. & Com. grossly unfair deposited the ordinary of care would have 1987). (Vernon § 17.45 Ann. Code registry limits into the of the court as urged by Villegas’s settlement offer. There rejected jury question asked: The taking action is also some evidence that this engage Did the insurance prevented judg- would have the entire excess action or course of action unconscionable ment that was entered Bleeker. We entry producing cause of the of that was a say jury’s finding can not of a Judgment? Final duty finding of and the breach the Stowers or course of ac- An unconscionable action damages resulting on the from that breach that, person’s practice is an act or tion contrary overwhelming weight are so to the - detriment, either clearly wrong of the evidence as to be advantage of the lack of knowl- a. takes manifestly unjust. appellants’ We overrule edge, ability, experience, capacity of sufficiency points challenging error degree person grossly to a unfair supporting jury’s finding the evidence issue. gross disparity in a between b. results paid in a and consideration value received The Good Faith Claims involving transfer of consider- transaction ation. of whether an insurer owes its issue duty good dealing insured a faith and fair of the Texas Rules Rule 278 party third claims when faced with non-discretionary provides a Procedure Civil squarely in a the insured was addressed re- request requirement that trial courts submit Supreme cent case from the Texas Court. jury pleadings if the questions ed Coatings Maryland Ins. Co. v. Head Indus. P. support them. Tex.R. Civ. evidence (Tex.1996) Servs, (per 938 S.W.2d 27 Smith, 278; Elbaor v. curiam). rejected unequivocally court there is evidence When action, holding that “Texas such a cause issue, the trial support the submission of duty recognizes only law one tort in this by excluding judge appropriately it from acts context, being stated Stow- Protective jury charge. Musser Smith at 28. ers.” Id. (Tex. rvs., Inc., Se 1987). However, required when points pertaining to reversal Appellants’ of error theory of a valid dealing party is denied submission good faith and fair claims are Exxon by pleadings and evidence. raised sustained. person.” damages by any provides recovery action 2. The DTPA Bus. & Com.Code Ann. 17.50(a)(3) (Vernon Supp.1997). § by “any course unconscionable action or caused *10 682 (Tex. Perez, 629, acting

Corp. v. 842 S.W.2d 631 counsel was not in his best interest or 1992). Trinity acting unconscionably. Appellant argues that there was no evi- duty to settle lawsuits under Stowers ques- dence to the submission of this essentially personal is an owed case, disagree. tion. In this an unso- We company insurance to its insured. See phisticated placed insured his trust in his Tamez, (Tex. 201, Charles v. 878 208 S.W.2d company insurance to handle settlement of- denied). App. Corpus Christi writ — By rejecting Villegas’s on his fers behalf. recognize right that an We insured’s to sue exchange in interplead- offer of a release for subject equita for failure to settle is to both limits, Trinity open left Bleeker to subrogation assignment. ble See Ameri multimillion dollar excess Co., can Centennial Ins. Co. v. Canal Ins. against was entered him. hold that Tamez, (Tex.1992); 843 S.W.2d 482-84 present these facts at least some evidence at 208.1 S.W.2d Trinity advantage took of Bleeker to a However, underlying claim to be trans- grossly degree. Similarly, unfair these facts assignment ferred must be viable. The present gross at least some evidence of a lacking a claim that in turnover of disparity paid between the consideration nothing. element transfers Stowers essential premiums the form insurance proposition is based on the that the insurer and the value he received the form of negligent responding to a settlement representation by Trinity. A demand within limits. G. Stowers Appellee’s point cross is sustained. Co., Indemnity Furniture Co. American (Tex.Comm’n App.1929, Disposition holding approved). The insurer could of the trial court is AF- insured, negligent regard to its held with regards FIRMED claim with however, the insured was himself dis- unless regards to DTPA REVERSED with aspect satisfied with some of the manner good faith claims. We REMAND the being claims which the insurer handled the unconscionability pro- for issue of further against him. made ceedings opinion. not inconsistent with this case, present In the Bleeker made no com- SEERDEN, C.J., plaint Trinity dissents. about the manner which claims, present and Bleeker handled SEERDEN, Justice, dissenting. Chief agreed with the decision not to settle less respectfully I I would hold that dissent. against than all of the claims him for Bleeker’s uncontroverted satisfaction with Trinity pay limits. never refused to representation he received from policy, merely but amount of the refused left no over viable Stowers claim to be turned claimants, settle with less than all plaintiffs. hospital including holding those liens. Trinity’s by deposition approval that he Bleeker indicated his testified and, any complaint, could not wanted the insurance to obtain a conduct absent claimants, against cause of action release from all that he relied on have raised Stowers time, Trinity. who told Because Bleeker had no Stowers the advice of his counsel at the over, parties the real trying get him that he was all of the claim to be turned settlement, a claim together claimants for and that interest cannot be allowed create personal that his on his behalf for their interest. he did have reason believe Tamez, estate, public policy subject in an unassert- we held that bars the to inclusion in his In unasserted, ed, claim). legal malpractice turnover of an denied Stowers cause We rea- denied insurer, of action ney an the attor- allowing party to force a Stowers soned legal malpractice, for failure to settle opponent lawsuit on behalf of a satisfied does not Tamez, 208; lawsuit. 878 S.W.2d at see also promote specific purpose of the turnover Robinson, Dauter-Clouse v. legal purpose of the Texas statute or the overall n.w.h.) (bank- (Tex.App. [14th Dist.] Tamez, —Houston system. at 208. rupt debtor in Texas does not have interest *11 EDELMAN, LEE, AMIDEI and Before I and render Accordingly, would reverse JJ. Trinity. OPINION AMIDEI, Justice. summary judg- appeal from two This is an IZEN, Jr., Appellant, A. Joe 28,1994, April and signed ments October single In a final severance. made Cole, NICHOLS,

John F. Warren error, the trial point appellant contends Associates, F. Nichols & John granting the motion for sum- court erred in P.C., Appellee. mary judgment. affirm. No. 14-95-0961-CV. by appel- from a suit filed This case arises Izen, Jr., lant, against Martha Alfred Joe Texas, Appeals Court (Mackin) for Mackin Izen conversion (14th Dist.). Houston, filed a cross-claim funds. Mackin 13, 1997. March Nichols, Cole, F. Warren appellees, John Associates, F. Nichols and P.C. and John (Nichols), things, legal alleging, among other contract, fi- breach of malpractice, breach duciary duty, and violations of the Texas De- ceptive Practices Act. settlement, part Mackin

As of their divorce assigned fifty percent undivided interest Izen against appellees. cause of action On her 26, 1991, July trial court entered interlocutory judgment take that Mackin appellees. Ap- nothing on claims her summary judgment pellees filed a motion for assignability of Mackin’s on the issue of the as legal malpractice claim to Izen. Attached affida- appellees’ motion was an an exhibit to states, part, vit of Mackin that Nichols, Firm and Warren Cole John representation nothing wrong in their did I at all times satisfied with of me. they acted representation their and believe my competent interest and as law- best in the mal- yers. allegations made allegations practice are the of Michael ease They Minns, Butch Bradt and Joe Izen. my allegations. I have never felt are not merit, malpractice case had brought solely gain additional visita- it my tion with children. Zomcik, Houston, for John F. Michael J. inquiry appeal is whether proper F. Nichols and Associates. Nichols John summary judgment, ful- seeking appellees, Jr., Houston, for Knapp, Fred Warren 1) as a initial to establish filled the burden Cole. genuine of law that there remained matter one or more Izen, Jr., of material fact as to pro issue A. se. Joe

Case Details

Case Name: Trinity Universal Insurance v. Bleeker
Court Name: Court of Appeals of Texas
Date Published: May 22, 1997
Citation: 944 S.W.2d 672
Docket Number: 13-95-075-CV
Court Abbreviation: Tex. App.
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