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In Re Terra Nova Ins. Co.
Citations: 992 S.W.2d 741; 1999 Tex. App. LEXIS 3962; 1999 WL 335968Docket: 06-99-00014-CV
Court: Court of Appeals of Texas; May 26, 1999; Texas; State Appellate Court
Gordon Williams owned a truck insured by Terra Nova Insurance Company and UnionAmerica Insurance Company, which was damaged in a wreck. Williams filed a lawsuit against the insurers to recover damages under the policy and also for breach of the duty of good faith and fair dealing, as well as violations of Section 21.21 of the Texas Insurance Code. The insurance policy included an appraisal provision intended to determine the monetary damage to the truck. The insurers requested the trial court to abate Williams' claims and enforce the appraisal provision before further proceedings. The trial court declined to enforce the appraisal provision at that time. In response, the insurers sought a writ of mandamus to compel the trial court to immediately enforce the appraisal process. Subsequently, the court was ordered to provide findings of fact and conclusions of law regarding its decision. The trial court concluded that the combination of breach of contract claims, which are subject to the appraisal provision, with extracontractual claims, which are not, would negatively impact judicial efficiency if the appraisal were ordered at that stage. The court also noted that there was no motion to separate the contract claim from the extracontractual claims, and discovery was ongoing for all causes of action. Although UnionAmerica had the right to invoke the appraisal provision, the trial court held discretion in determining the timing of the appraisal. The appellate court found no abuse of discretion by the trial court and denied the petition for writ of mandamus.