In re American Risk Insurance Company, Inc.

Summary

The Texas Court of Appeals for the First District conditionally granted American Risk Insurance Company’s petition for writ of mandamus challenging the denial of its amended Texas Rule of Civil Procedure 91a motion to dismiss. The court held that payment of the appraisal award foreclosed the insureds’ common-law and statutory bad-faith claims because they alleged no injury independent of policy benefits. The court directed the trial court to vacate its denial order and dismiss the asserted causes of action.

Holdings

1. Because the insurer paid the appraisal award and the Francises alleged no injury independent of policy benefits, their common-law and statutory bad-faith and related Insurance Code causes of action had no basis in law under Rule 91a.
2. The causes of action had no basis in law because, taking the pleaded allegations as true, the Francises were not entitled to the requested relief after payment of the appraisal award and absent an independent injury.
3. Mandamus relief was appropriate because the trial court erroneously denied the Rule 91a motion and the insurer lacked an adequate remedy by appeal.

Questions Presented

1. Whether the trial court abused its discretion by denying the insurer's amended Rule 91a motion to dismiss.
2. Whether payment of an insurance appraisal award forecloses common-law and statutory bad-faith and related Insurance Code claims when the insured alleges no independent injury beyond unpaid policy benefits.
3. Whether the insurer lacked an adequate remedy at law such that mandamus relief was appropriate.

Disposition

writ_granted