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Bobby Hawthorne v. Countrywide Home Loans, Inc. and Countrywide Insurance Services of Texas, Inc.

Citation: Not availableDocket: 03-03-00206-CV

Court: Court of Appeals of Texas; January 7, 2004; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, an appellant contested a district court's summary judgment favoring Countrywide Home Loans, Inc. regarding the authority to disclose insurance information under Texas Insurance Code article 21.48A. The appellant had initially authorized Mission Mortgage of Texas to share his insurance information solely for rate quoting and compliance purposes. However, after Countrywide acquired the mortgage servicing rights, they began soliciting homeowners' insurance, prompting the appellant to file suit for alleged unauthorized disclosure. The district court granted summary judgment for Countrywide, asserting that the appellant was aware at closing that Countrywide was the lender and had acknowledged this in a deposition. The appellant appealed on grounds of unauthorized sharing and scope of authority, but the appellate court, applying de novo review, found that the existing authority was sufficient for Countrywide to act as the lender. The court noted the appellant's failure to present his second argument at trial, which barred its consideration on appeal. Consequently, the court affirmed the district court's judgment, ruling against the appellant on both grounds.

Legal Issues Addressed

Appellate Review of Claims Not Presented at Trial

Application: Hawthorne's argument that Countrywide exceeded its authority was not considered on appeal as it was not raised at the trial court level.

Reasoning: Hawthorne's second argument—that Countrywide exceeded the scope of authority—was not presented to the trial court and cannot be considered on appeal.

Authority of Lenders to Disclose Insurance Information

Application: The court determined that the authority granted to the original lender extended to Countrywide Home Loans, allowing it to disclose insurance information under the existing agreement.

Reasoning: The court affirmed the district court's judgment, indicating that the disclosure authority granted was sufficient for Countrywide Home Loans to act as the lender.

Scope of Authority in Mortgagor’s Affidavit

Application: The court found that Hawthorne's acknowledgment of Countrywide as the lender at closing satisfied the requirement for written authority to share insurance information.

Reasoning: These facts support the interpretation that Countrywide should be included as a lender in the affidavit, satisfying its burden under Tex. Ins. Code Ann. art. 21.48A to demonstrate Hawthorne’s written authority to share his insurance information.

Summary Judgment Standards

Application: The appellate court applied the standard that no genuine issues of material fact exist and that the movant is entitled to judgment as a matter of law, taking all favorable evidence and reasonable inferences in favor of the nonmovant.

Reasoning: The appellate court reviewed the summary judgment de novo, adhering to established standards: the movant must prove no genuine issues of material fact exist and is entitled to judgment as a matter of law, with all favorable evidence and reasonable inferences taken in favor of the nonmovant.