Alvarado v. Oklahoma Surety Co.

281 S.W.3d 38, 2005 Tex. App. LEXIS 3945, 2005 WL 1218957
CourtCourt of Appeals of Texas
DecidedMay 19, 2005
Docket08-04-00239-CV
StatusPublished
Cited by10 cases

This text of 281 S.W.3d 38 (Alvarado v. Oklahoma Surety Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alvarado v. Oklahoma Surety Co., 281 S.W.3d 38, 2005 Tex. App. LEXIS 3945, 2005 WL 1218957 (Tex. Ct. App. 2005).

Opinion

OPINION

DAVID WELLINGTON CHEW, Justice.

Appellant David Alvarado appeals from the dismissal of his lawsuit against Appel-lee Oklahoma Surety Company, his employer’s underinsured motorist (UIM) insurance carrier. In his sole issue, Mr. Alvarado contends the trial court erred in concluding that it lacked subject matter jurisdiction for his alleged failure to make a pre-suit demand for UIM benefits before filing the lawsuit. Because Mr. Alvarado’s live pleadings contained alleged facts that affirmatively demonstrated that the trial court had subject matter jurisdiction, we reverse the trial court’s order and remand the cause to the trial court for further proceedings.

On August 28, 2003, Mr. Alvarado filed suit against Misty Grigry and Brett Gri-gry. He alleged that on February 21, 2003, Ms. Grigry ran a red light and hit his vehicle while he was taking a left at an intersection in Monahans, Texas. Mr. Alvarado claimed that the defendant’s negligence was the proximate cause of the collision and the injuries he sustained. Mr. Alvarado later amended his petition to add Mid-Continent Casualty Company as a defendant. Mr. Alvarado alleged that the motor vehicle accident had occurred while he was driving a vehicle owned by his employer, H & L Monachem, Ltd., that Ms. Grigry was an underinsured driver, that his employer carried an underinsured motorist insurance policy with Mid-Continent, and that Mid-Continent had “failed *40 and refused to pay benefits due under the policy provisions in question.” 1

On May 11, 2004, Mid-Continent filed a motion to dismiss, in which it argued that its affiliate Oklahoma Surety Company was, in fact, the employer’s insurance carrier and that neither it nor Oklahoma Surety had denied Mr. Alvarado’s claim for underinsured/uninsured benefits under the policy. Further, Mid-Continent argued that the lawsuit should be dismissed because “the causes of action asserted against it are premature and no cause of action has accrued against MID-CONTINENT” or Oklahoma Surety. In Mr. Alvarado’s fourth amended petition, his live pleading at the time of the hearing on the motion to dismiss, Mr. Alvarado named Oklahoma Surety Company as a defendant and dismissed Mid-Continent. 2 In this pleading, Mr. Alvarado alleged that his employer carried an insurance policy with Oklahoma Surety and that the policy contained coverage for damages caused by an underinsured driver. Mr. Alvarado alleged that Ms. Grigry was an underinsured driver, and that “[d]espite Plaintiffs compliance with the terms and provisions of the policy, Defendant OKLAHOMA has failed and refused to pay benefits due under the policy provisions in question.” Mr. Alvarado alleged causes of action against Oklahoma Surety for: (1) violations of the Texas Deceptive Trade Practices Act; (2) breach of contract; (3) common law fraud; (4) bad faith; and (5) violation of Section 21.55 of the Texas Insurance Code. Under his bad faith claim and his Section 21.55 violation claim, Mr. Alvarado specifically alleged that Oklahoma had denied payment of his claim. We also note that in his breach of contract claim, Mr. Alvarado alleged that Oklahoma had failed to perform its written contractual obligations under the insurance contract.

On May 21, 2004, the trial court held a hearing on the motion to dismiss. At the hearing, counsel for Mid-Continent and Oklahoma Surety argued that Mr. Alvarado’s UIM claim had not been denied by Oklahoma Surety, and until that happened, Mr. Alvarado had no causes of action for bad faith, for deceptive trade practices, and likewise for the remaining claims he asserted. In response, Mr. Alvarado’s counsel argued that there was no prerequisite that a plaintiff first make a demand for payment upon the UIM carrier, who must then deny the claim before a plaintiff can file suit against the UIM carrier. Mr. Alvarado’s counsel also argued that his right to file a lawsuit was separate and distinct from a determination of the UIM’s liability or whether his cause of action had accrued. On June 3, 2004, the trial court dismissed Mr. Alvarado’s lawsuit without prejudice to his right, if any, “to pursue his remedies against Oklahoma Surety Company at a due and proper time and in a proper forum.” Mr. Alvarado now brings this appeal.

In his sole issue, Mr. Alvarado challenges the trial court’s dismissal of his lawsuit. In its motion to dismiss and on appeal, Oklahoma Surety contends that Mr. Alvarado has no cause of action until his claim is denied, at which point his causes of action, if any, would accrue. Further, Oklahoma Surety argues that Mr. Alvarado has therefore prematurely filed his lawsuit and his claims are not ripe for adjudication because no injury has yet occurred.

*41 Standard of Review

The parties agree that Oklahoma Surety’s motion to dismiss was the functional equivalent of a plea to the jurisdiction. See Anderson v. City of San Antonio, 120 S.W.3d 5, 7 (Tex.App.-San Antonio 2003, pet. denied). A plea to the jurisdiction is a dilatory plea, the purpose of which is to defeat a cause of action without regard to whether the claim asserted has merit. Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.2000). Through the plea, a party challenges the trial court’s authority to determine the subject matter of the pleaded cause of action. City of Midland v. Sullivan, 33 S.W.3d 1, 6 (Tex. App.-El Paso 2000, pet. dism’d w.o.j.).

The plaintiff has the burden to allege facts affirmatively demonstrating that the trial court has subject matter jurisdiction. Texas Ass’n of Bus. v. Texas Air Control Board, 852 S.W.2d 440, 446 (Tex.1993). We take as true the facts plead in the plaintiffs petition in determining whether those facts support jurisdiction in the trial court and we may review the entire record to determine if there is jurisdiction. Id. at 446. A court deciding a plea to the jurisdiction, however, is not required to look solely to the pleadings, but may consider evidence and must do so when necessary to revolve the jurisdictional issues raised. Bland, 34 S.W.3d at 555; see County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002). The court should confine itself to the evidence relevant to the jurisdictional issue. Bland, 34 S.W.3d at 555. Whether the trial court has subject matter jurisdiction is a question of law subject to de novo review. See Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 928 (Tex.1998), cert. denied, 526 U.S. 1144, 119 S.Ct. 2018, 143 L.Ed.2d 1030 (1999).

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Cite This Page — Counsel Stack

Bluebook (online)
281 S.W.3d 38, 2005 Tex. App. LEXIS 3945, 2005 WL 1218957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alvarado-v-oklahoma-surety-co-texapp-2005.