Commercial Standard Insurance Co. v. Southern Farm Bureau Casualty Insurance Co.

509 S.W.2d 387, 1974 Tex. App. LEXIS 2190
CourtCourt of Appeals of Texas
DecidedApril 25, 1974
Docket843
StatusPublished
Cited by17 cases

This text of 509 S.W.2d 387 (Commercial Standard Insurance Co. v. Southern Farm Bureau Casualty Insurance 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
Commercial Standard Insurance Co. v. Southern Farm Bureau Casualty Insurance Co., 509 S.W.2d 387, 1974 Tex. App. LEXIS 2190 (Tex. Ct. App. 1974).

Opinion

OPINION

BISSETT, Justice.

This is a suit by one insurance company against another insurance company for a *389 declaratory judgment that the sued company be required to pay the suing company part of a money settlement which the suing company negotiated with a third party in a prior lawsuit. Commercial Standard Insurance Company hereinafter called “Commercial Standard” on April 26, 1972, instituted suit against Southern Farm Bureau Casualty Insurance Company hereinafter called “Farm Bureau” for contribution out of a $52,000.00 settlement which Commercial Standard had negotiated in the prior lawsuit. Following a jury trial, a take nothing judgment was rendered in favor of Farm Bureau. Commercial Standard has appealed. We affirm.

Certain facts are undisputed. Át all times pertinent to this appeal, 1) there was in force and effect a policy of general automobile liability insurance that was issued by Commercial Standard to Dye Trucking Company, which policy provided that under certain circumstances the policy was applicable to a truck which was not owned by Dye, but which was being operated in behalf of Dye’s business; and 2) there was in force and effect a policy of general automobile liability insurance that was issued by Farm Bureau to one Aubrey L. Johse. On September 18, 1970 (when both insurance policies were in force), Johse, the owner-operator of a truck while hauling gravel for Dye under a contract, was involved in a collision with a vehicle then being driven by one Jesus Gomez. Suit was filed by Gomez against Johse on November 1, 1971, to recover for severe personal injuries sustained by him in the accident. Johse, who was served with citation on November 9, 1971, promptly delivered the petition and citation to Dye, who, in turn, delivered the same to Commercial Standard. An answer in behalf of Johse was filed by Commercial Standard on November 18, 1971. On March 20, 1972, Commercial Standard made a formal request that Farm Bureau defend Johse in the suit that was filed against him by Gomez. The Gomez-Johse case was set for trial on March 27, 1972. Commercial Standard, by letter dated March 24, 1972, advised Farm Bureau that it had agreed to pay Gomez $52,000.00 in settlement of the suit and demand was made that Farm Bureau pay its part of the settlement figure in accordance with the terms of the policy which it had theretofore issued to Johse. Farm Bureau refused.

Commercial Standard contended that it learned of Farm Bureau’s policy on or about December 15, 1971, inquired into the coverage provided by the policy, requested Farm Bureau to assume its liability thereunder, but that Farm Bureau failed to answer the inquiry directly. Farm Bureau disputed that contention. It asserted that it had no notice of the Gomez-Johse litigation until it received a letter from counsel for Commercial Standard dated December 15, 1971, “addressed to Tom Dean, whose area of responsibility did not in any way involve the accident”. It further asserted that no suit papers were delivered along with the letter and no demand was made for a defense until March 20, 1972, which was only a matter of days before the case was set for trial. Johse did not himself forward the suit papers or make a demand for a defense upon Farm Bureau. This was done by counsel for Commercial Standard. The agreement to pay Gomez $52,000.00 in settlement of his case was made without notice to Farm Bureau, and without its approval or consent.

Trial to the jury commenced on October 25, 1972. The jury, in response to the special issues that were submitted, in substance, found: 1) Farm Bureau did not in any way effect a waiver of its right to deny coverage for breach of policy conditions; 2) there was no substantial compliance with Farm Bureau’s policy requirement that it immediately be provided with every demand, notice, summons or other process; 3) Johse did not make a demand upon Farm Bureau to provide him a defense but, rather, affirmatively instructed Farm Bureau to refrain from participating in the defense; 4) neither Johse nor Commercial Standard, as soon as reasonably practicable, forwarded every demand, no *390 tice, summons, or other process received by them in connection with the Gomez-Johse litigation; 5) the demand for a defense which was made at a time such that Farm Bureau would have been prejudiced in its defense of the case had it assumed responsibility for providing a defense; and 6) Commercial Standard failed to prove that the moneys paid to Gomez were paid under its insurance policy in the interest of Johse or that the $52,000.00 payment was fair and reasonable. The jury verdict was returned on October 27, 1972, but judgment was not rendered until July 9, 1973.

Commercial Standard’s brief contains 80 points of error. Most of them cannot be considered since the asserted errors were not preserved for appellate review.

Counsel for Commercial Standard, with the consent of all parties and before the charge was read to the jury, dictated certain objections to the court’s charge to the court reporter. Points of error 2-15, both inclusive, complain of the submission of certain special issues over Commercial Standard’s objections to the court’s charge. The original transcript, as filed, does not contain such objections. Counsel for Commercial Standard filed a sworn motion in this Court on February 26, 1974, for leave to file a supplemental transcript that would contain the omitted objections. The following quotations relating to the objections are from the motion:

“. . . Said objections to the court’s charge were omitted from the original transcript by the clerk, and the reason why such objections were omitted was because they had not actually been filed at the time the original transcript was completed . . . the objections to the court’s charge were not filed, and was apparently overlooked inadvertently by appellant’s counsel . . . (the objections) were all timely presented to the court . . . but the trial court judge did endorse his ruling thereupon as contemplated by Rule 272 of the Texas Rules of Civil Procedure.”

This Court promptly granted the motion; we believed that there had been a compliance with Rule 272, and that the objections had been timely reduced to writing, and were timely presented to the judge and signed by him but that they had not been filed with the clerk because of inadvertence on the part of counsel. The objections, which are now on file with the district clerk of Wharton County, were not filed in that office until February 25, 1974. Such objections, which are contained in the supplemental transcript, show that the objections were not presented in writing to the trial judge for endorsement of his ruling and official signature thereon until February 21, 1974.

Rule 272, T.R.C.P., in part, reads:
“. . . The requirement that the objections to the court’s charge shall be in writing will be sufficiently complied with if such objections are dictated to the court reporter . . . and are subsequently transcribed and the court’s ruling and official signature endorsed thereon and filed with the clerk in time to be included in the transcript. .” (Emphasis supplied).

The record was due to be filed in this Court on November 20, 1973. That deadline was met by Commercial Standard.

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Cite This Page — Counsel Stack

Bluebook (online)
509 S.W.2d 387, 1974 Tex. App. LEXIS 2190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-standard-insurance-co-v-southern-farm-bureau-casualty-texapp-1974.