Justia Insurance Law Opinion Summaries

Stacey and Mark Bent sued USAA for breach of their homeowners’ policy and violations of the Texas Insurance Code. The Bents subsequently stopped making mortgage payments, and their lender foreclosed on their home. The Bents’ case against USAA, however, proceeded to trial. The jury concluded that USAA had not breached the homeowner’s policy but did violate chapter 541 of the Insurance Code. The trial court entered judgment on the jury’s verdict but later granted the Bents’ motion for new trial. The court of appeals conditionally granted a writ of mandamus directing the trial court to vacate its order and render judgment on the jury’s verdict, concluding that the trial court abused its discretion on each of its bases for ordering a new trial. The Bents sought relief in mandamus from the Supreme Court. The Supreme Court denied the Bents’ mandamus petition, holding (1) three of the trial court’s bases for ordering a new trial failed to satisfy the facial requirements set forth in In re Columbia Med. Ctr. of Las Colinas, Subsidiary, L.P. and In re United Scaffolding, Inc.; and (2) on the remaining basis at issue on appeal, the court of appeals correctly found that the record did not support the trial court’s stated rationale. View "In re Bent" on Justia Law

Stacey and Mark Bent sued USAA for breach of their homeowners’ policy and violations of the Texas Insurance Code. The Bents subsequently stopped making mortgage payments, and their lender foreclosed on their home. The Bents’ case against USAA, however, proceeded to trial. The jury concluded that USAA had not breached the homeowner’s policy but did violate chapter 541 of the Insurance Code. The trial court entered judgment on the jury’s verdict but later granted the Bents’ motion for new trial. The court of appeals conditionally granted a writ of mandamus directing the trial court to vacate its order and render judgment on the jury’s verdict, concluding that the trial court abused its discretion on each of its bases for ordering a new trial. The Bents sought relief in mandamus from the Supreme Court. The Supreme Court denied the Bents’ mandamus petition, holding (1) three of the trial court’s bases for ordering a new trial failed to satisfy the facial requirements set forth in In re Columbia Med. Ctr. of Las Colinas, Subsidiary, L.P. and In re United Scaffolding, Inc.; and (2) on the remaining basis at issue on appeal, the court of appeals correctly found that the record did not support the trial court’s stated rationale. View "In re Bent" on Justia Law

J&D Towing, LLC, a towing company, owned only one tow truck that was rendered a total loss when a negligent motorist collided with the truck. J&D filed a claim with American Alternative Insurance Corporation (AAIC) under an underinsured-motorist policy issued by AAIC requesting compensation for the loss of use of the truck. AAIC denied the claim. Thereafter, J&D sued AAIC seeking loss-of-use damages. The trial court entered judgment in favor of J&D. The court of appeals reversed, concluding that Texas law allows loss-of-use damages for partial destruction but not for total destruction of personal property. The Supreme Court reversed, holding that Texas law permits loss-of-use damages in total-destruction cases. View "J&D Towing, LLC v. Am. Alternative Ins. Corp." on Justia Law

U.S. Metals, Inc. sold ExxonMobil Corp. approximately 350 flanges for use in constructing diesel refinery processing units. In post-installation testing, several flanges leaked, and ExxonMobil decided it was necessary to replace them to avoid the risk of fire and explosion. ExxonMobil sued U.S. Metals for the cost of replacing the flanges and damages for the lost use of the diesel units during the process. U.S. Metal settled with ExxonMobil and then claimed indemnification from its commercial general liability (CGL) insurer, Liberty Mutual Group, Inc., for the amount paid. Liberty Mutual denied coverage. U.S. Metals sued in federal district court to determine its right to a defense and indemnity under the policy. Four questions were certified to the Supreme Court by the United States Court of Appeals for the Fifth Circuit. The Court concluded that the CGL does not cover most of the damages claimed and answered the circuit court’s questions accordingly. View "U.S. Metals, Inc. v. Liberty Mut. Group, Inc." on Justia Law