Chris Albers v. State Farm Mutual Automobile Insurance Company

CourtCourt of Appeals of Texas
DecidedJuly 18, 2024
Docket09-23-00230-CV
StatusPublished

This text of Chris Albers v. State Farm Mutual Automobile Insurance Company (Chris Albers v. State Farm Mutual Automobile Insurance Company) 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
Chris Albers v. State Farm Mutual Automobile Insurance Company, (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-23-00230-CV __________________

CHRIS ALBERS, Appellant

V.

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellee

__________________________________________________________________

On Appeal from the 284th District Court Montgomery County, Texas Trial Cause No. 20-08-09819-CV __________________________________________________________________

MEMORANDUM OPINION

Appellant Chris Albers (“Appellant” or “Albers”) sued Appellee State Farm

Mutual Automobile Insurance Company (“Appellee” or “State Farm”) for

declaratory judgment. The parties entered into a settlement agreement just before

trial. In an amended petition, Albers added a claim for breach of the settlement

agreement, and he also filed a motion for summary judgment. The trial court granted

Albers’s summary judgment on his breach of contract claim, but the court did not

1 award Albers attorney’s fees. In this appeal, Appellant argues that the trial court

erred by failing to award him attorney’s fees under section 38.001 of the Civil

Practice and Remedies Code. We affirm as modified.

Background

The underlying lawsuit 1 began in August of 2020, when Albers filed his

Original Petition against State Farm seeking declaratory judgment as to his right to

underinsured motorist benefits under a policy with State Farm. Albers also sought

attorney’s fees under the Declaratory Judgments Act. According to the petition,

Albers was injured when he was struck by Lauren Marshburn, who was insured by

State Farm. Albers settled with Marshburn with State Farm’s consent, but Albers’s

damages exceeded Marshburn’s liability limit. State Farm asserted a general denial

answer and asserted certain affirmative defenses. In his First Amended Petition,

Albers added a bad faith claim against State Farm.

Just before trial, the parties told the trial court that they had reached a

settlement agreement under which State Farm would pay Albers $32,500 in

exchange for a release of all claims. Counsel for the parties told the trial court,

[Counsel for State Farm]: Your Honor, we’re coming now the parties, State Farm and Mr. Albers, through counsel, announcing that the claims and causes of action against Mr. Albers asserted in this cause have been settled. State Farm has agreed to pay and Mr. Albers has agreed to

1 Because this appeal pertains only to the trial court’s failure to award attorney’s fees, we discuss the details of the underlying lawsuit only as necessary. See Tex. R. App. P. 47.1. 2 accept 32,500 [] in full settlement of its claims against State Farm. The only condition to the settlement is the parties need to confirm that the impasse payment previously made has not been cashed.

[Counsel for Albers]: And the plaintiffs agree that that is the settlement we have reached. We’re good.

Albers filed a Supplemental and Amended Petition alleging that State Farm

failed to comply with the terms of the Settlement Agreement and asserting a breach

of contract claim against State Farm and a claim for attorney’s fees under Chapter

38 of the Civil Practice and Remedies Code.

In March of 2023, Albers filed a Traditional Motion for Summary Judgment.

Therein, Albers alleged that the parties had reached a settlement agreement in open

court on September 6, 2022, under which Albers would provide a release to State

Farm contingent upon the receipt of a $32,500 payment to Albers from State Farm

and that State Farm did not pay as agreed. Albers stated in the motion that State Farm

had indicated it required confirmation that a previously-issued “impasse” check had

not been cashed. According to Albers’ motion, State Farm had issued the check for

the “impasse payment” of $2,090.92 made payable to “Christopher Albers & David

Kallus Attorney at Law, His Attorney.” However, the check was actually delivered

to State Farm’s original attorneys, Sheehy, Ware, Pappas & Grubbs (“Sheehy

Ware”) and was inadvertently cashed. When the misrouted check was discovered,

Sheehy Ware issued a check from its IOLTA account to Brenton Stanfield, Albers’s

3 attorney at the time. Mr. Stanfield held the check, as it was made payable to Albers

and David Kallus.

According to Albers, even after issues related to the issuance of the impasse

payment were resolved, State Farm refused to make the settlement payment to

Albers. Albers alleged the settlement agreement is enforceable under Rule 11, and

“the only [c]ondition placed on this settlement was confirmation that the Impasse

Payment Check had not been cashed by Mr. Albers or his counsel.” Albers also

argued he provided State Farm with a full and final release and indemnity agreement

contingent upon receipt of the $32,500 payment. Albers attached to the motion a

copy of a letter dated October 13, 2022, from Albers’s attorney—Brenton

Stanfield—to counsel for State Farm stating that Albers fully performed his

obligation under the settlement agreement and State Farm failed to comply. The

letter further stated that it constituted presentment of Albers’s claim under Chapter

38. The motion for summary judgment requested damages in the amount of $32,500

and attorney’s fees under Chapter 38.

Albers’s motion requested that the trial court award him reasonable and

necessary attorney’s fees of $8,802.50 that he incurred in prosecuting the lawsuit,

and a copy of an “Attorney Fees Statement for Albers v. State Farm” was attached

to the motion. Albers also attached to the motion an Unsworn Declaration of Brenton

M. Stanfield—Albers’s attorney at the time—in which Stanfield states that he had

4 worked 25.15 hours prosecuting the lawsuit on behalf of Albers, at an hourly rate of

$350 an hour and that “Mr. Albers ought to recover the reasonable attorney’s fees

and costs requested herein, in the amount of $8,802.50 pursuant to Texas Civil

Practice[] and Remedies Code § 38.001 and the contract between the parties.”

Stanfield also states that he anticipated that Albers would incur at least $975 in

reasonable and necessary attorney’s fees replying to State Farm’s response and $650

if a hearing was required. Stanfield’s declaration also states that he retained the

“Impasse Payment Check” in his files and did not cash the check.

In the response to the motion for summary judgment, State Farm asserted that

although the parties announced a settlement in court on September 6, 2022, the

parties have disagreed about language of the release agreement and the full terms of

the settlement and release “remain undefined and unagreed[.]” State Farm noted in

its response that Albers had signed a release agreement prepared by his own attorney

and that he had not signed a release prepared by State Farm. State Farm did not

challenge the reasonableness or necessity of the amount of the attorney’s fees in its

response to the motion for summary judgment.

Albers filed a reply to State Farm’s response asserting as “indisputable” that

Albers and State Farm entered an enforceable settlement agreement in court and on

the record on September 6, 2022, and that State Farm had not paid Albers $32,500

as agreed.

5 On June 15, 2023, the trial court signed an Order Granting Plaintiff Chris

Albers’s Motion for Summary Judgment on his breach of contract claim, ordering

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Chris Albers v. State Farm Mutual Automobile Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chris-albers-v-state-farm-mutual-automobile-insurance-company-texapp-2024.