Banner Life Insurance Company v. Jesse M. Pacheco

CourtCourt of Appeals of Texas
DecidedJanuary 11, 2005
Docket14-04-00203-CV
StatusPublished

This text of Banner Life Insurance Company v. Jesse M. Pacheco (Banner Life Insurance Company v. Jesse M. Pacheco) 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
Banner Life Insurance Company v. Jesse M. Pacheco, (Tex. Ct. App. 2005).

Opinion

Affirmed and Opinion filed January 11, 2005

Affirmed and Opinion filed January 11, 2005.

In The

Fourteenth Court of Appeals

____________

NO.  14-04-00203-CV

BANNER LIFE INSURANCE COMPANY, Appellant

V.

JESSE M. PACHECO, Appellee

On Appeal from the 157th District Court

Harris County, Texas

Trial Court Cause No.  02-34006

O P I N I O N

Appellant, Banner Life Insurance Company, filed suit against its agent, appellee Jesse Pacheco, alleging claims for breach of contract, breach of fiduciary duty, and negligence related to the agent=s sale of a life insurance policy.  After a jury trial, the trial court entered a take-nothing judgment in favor of the agent.  Appellant raises two issues on appeal, challenging (1) the legal and factual sufficiency of the evidence to support the jury=s findings on breach of contract, breach of fiduciary duty, and negligence, and (2) the trial court=s rulings on appellant=s motions for judgment notwithstanding the verdict and motion for new trial.  We affirm the judgment of the trial court.


Factual and Procedural Background

 In August 1999, appellee Jesse Pacheco, an insurance agent for appellant Banner Life Insurance Company, approached Linda Cherry concerning the purchase of a life insurance policy.  Linda=s husband, Thomas E. Cherry (ACherry@), filled out an application for life insurance on his life.  Cherry submitted the application to Banner, through its agent Pacheco, on November 12, 1999.  The policy was in the amount of $500,000. 

Cherry was required to have a medical exam as part of the application for life insurance.  At the time, Cherry was fifty-five years old and an avid runner.  He was examined by a medical examiner on November 24, 1999.  Banner subsequently approved Cherry=s application, and, on December 21, 1999, Pacheco delivered the policy to Cherry=s wife.

On January 7, 2000, Cherry saw a doctor for treatment of what he thought was a boil located on his scalp behind his ear.  During the exam, Cherry told the doctor that the Aboil@ had been on his head for the past one-and-a-half months, and that although he had attempted to treat it at home with over-the-counter medications, it had not gone away.  Cherry was referred to another doctor who surgically removed the growth at the end of January 2000.  Tests performed on the growth revealed it was cancerous.  Cherry learned that the cancer was in stage four and had spread from his kidneys to his lungs to his head.  Cherry passed away  in December 2000. 

Upon Cherry=s death, his wife made a claim for benefits under the Banner life insurance policy.  Because Cherry=s death was within the two-year period of contestability, Banner investigated the cause and circumstances of his death.  In its investigation, Banner discovered Pacheco had delivered the policy to Mrs. Cherry without inquiring with respect to the health of Cherry at the time of delivery.  Banner determined that it did not have enough evidence to deny the claim, without a risk of litigation and exposure to extra-contractual damages, so Banner paid Mrs. Cherry $509,206 pursuant to the policy, including interest. 


Banner filed suit against Pacheco seeking to recover from Pacheco individually the $509,206 amount that Banner paid to Mrs. Cherry under the policy.  Banner sued Pacheco for breach of contract, breach of fiduciary duty, negligent misrepresentation, and negligence.  Banner=s claims stem from alleged violations of (1) the terms of the agent/broker agreement between Banner and Pacheco, and (2) the terms of Cherry=s application for insurance which Pacheco also signed.  Banner claims Pacheco violated the terms of the agent/broker agreement and the insurance application by (1) not hand-delivering the life insurance policy to Cherry personally, and (2) not inquiring of Cherry at the time of delivery whether there were any changes in his health.

          The case was tried to a jury, and the jury returned a verdict in favor of Pacheco.  The trial court entered a take-nothing judgment in favor of Pacheco.

Discussion

Appellant raises two issues on appeal: (1) whether the evidence supports the jury=s answers to the breach of contract, breach of fiduciary duty, and negligence questions; and (2) whether the trial court should have granted judgment notwithstanding the verdict or granted appellant=s motion for new trial, instead of entering judgment on the verdict.[1]  Because both of these issues are nearly identical in challenging the legal and factual sufficiency of the evidence to support the jury=s verdict, we will address them together.

I.        Legal and Factual Sufficiency Standards of Review


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Banner Life Insurance Company v. Jesse M. Pacheco, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banner-life-insurance-company-v-jesse-m-pacheco-texapp-2005.