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Wellington Insurance Company and Richard Barkumme v. Victor Banuelos

Citation: Not availableDocket: 04-17-00365-CV

Court: Court of Appeals of Texas; January 30, 2018; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves Wellington Insurance Company and Richard Barkkume's appeal against the trial court's denial of their motion for summary judgment in a property damage claim initiated by Victor Banuelos. The central legal issue was whether Banuelos's breach of contract and extra-contractual claims could persist after the insurer's timely payment of an appraisal award. The appellate court, referencing the precedent set in Ortiz v. State Farm Lloyds and Garcia, determined that such claims do not survive following the payment. The trial court had initially denied their summary judgment motion, but the appellate court found this to be an error and reversed the decision, granting summary judgment in favor of Wellington and Barkkume. The appellate court also clarified that the Texas Supreme Court's ruling in Menchaca, which does not pertain to appraisal awards, does not affect the Garcia precedent. As Wellington timely paid the appraisal award and Banuelos failed to demonstrate any independent injury or grounds for contesting the award, the appellate court ruled in favor of the insurer, effectively concluding the litigation in Wellington and Barkkume's favor.

Legal Issues Addressed

Appraisal Award Payment and Summary Judgment

Application: The appellate court determined that the timely payment of an appraisal award by an insurer entitles it to summary judgment against the insured's breach of contract and extra-contractual claims.

Reasoning: An insurer's payment of an appraisal award grants it entitlement to summary judgment against an insured's contractual and extra-contractual claims, as established in Ortiz and supported by the precedent set in Garcia.

Effect of Appraisal Award on Breach of Contract Claims

Application: The court concluded that an insured's breach of contract claims do not survive once the insurer has paid the appraisal award, referencing relevant case law.

Reasoning: Citing prior case law, specifically Ortiz v. State Farm Lloyds, the court concluded that these claims do not survive such payment, thereby ruling that the trial court erred in denying the motion for summary judgment.

Non-Applicability of Menchaca to Appraisal Awards

Application: The court reaffirmed that the Texas Supreme Court's decision in Menchaca does not apply to appraisal awards and does not alter the legal principles established in Garcia regarding summary judgment.

Reasoning: The analysis included a review of the Texas Supreme Court's decision in Menchaca, which concluded that Menchaca does not pertain to appraisal awards and does not necessitate revisiting the Garcia holding.