Farmers Texas County Mutual Insurance Co. v. Floyd Barr

CourtCourt of Appeals of Texas
DecidedMay 23, 2024
Docket09-22-00321-CV
StatusPublished

This text of Farmers Texas County Mutual Insurance Co. v. Floyd Barr (Farmers Texas County Mutual Insurance Co. v. Floyd Barr) 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
Farmers Texas County Mutual Insurance Co. v. Floyd Barr, (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-22-00321-CV __________________

FARMERS TEXAS COUNTY MUTUAL INSURANCE CO., Appellant

V.

FLOYD BARR, Appellee

__________________________________________________________________

On Appeal from the 284th District Court Montgomery County, Texas Trial Cause No. 20-06-07141-CV __________________________________________________________________

MEMORANDUM OPINION

In Bocquet v. Herring, the Supreme Court of Texas held that the

Declaratory Judgements Act provided the statutory authorization

required to support an award of attorney’s fees to the plaintiffs who had

prevailed in a declaratory judgment action against the insurance

company that covered their vehicle and that denied their claim seeking

1 damages under the underinsured motorist (UIM) coverage of their

policy. 1 Under the Declaratory Judgments Act (UDJA), a trial court’s

award of attorney fees is committed to the trial court’s sound discretion,

subject to the requirements that the fees that are awarded are

reasonable, necessary, equitable and just. 2

Farmers Texas County Mutual Insurance Company (Farmers)

appeals from a judgment in which the trial court awarded Floyd Barr,

among other things, $50,000 in attorney’s fees for the services of Barr’s

attorney through the trial. Farmers raises one issue in the appeal and

complains that “the trial court erred by not applying concepts of fairness

given all the circumstances when it awarded attorney’s fees in this UIM

case [because it awarded fees] that are not equitable and just.” For the

reasons more fully explained below, we are not persuaded that Farmers

has shown the trial court’s award constitutes an abuse of discretion based

on its argument that the award is not equitable and just.

1Bocquet v. Herring, 972 S.W.2d 19, 21 (Tex. 1998); Tex. Civ. Prac.

& Rem. Code Ann. § 37.009. 2Tex. Civ. Prac. & Rem. Code Ann. § 37.009.

2 Background

After Barr settled the personal injury claim he had against Pope for

$30,000 with the insurance company that insured Pope’s vehicle,

Farmers paid Barr $10,000 under the Personal Injury Protection (PIP)

coverage of Barr’s auto policy with Farmers. 3 Claiming that he had

suffered more than $40,000 in damages in the collision with Pope, Barr

filed an underinsured motorist claim under his auto policy with Farmers.

Farmers and Barr were subsequently unable to resolve the UIM claim

for the gap that Barr alleged existed between the damages Pope caused

in the wreck and the $40,000 that Barr had received in total insurance

benefits after the wreck—$30,000 paid by the liability insurance carrier

for Pope and $10,000 paid by Farmers under the PIP provisions of Barr’s

policy.

In June 2020, Barr sued Farmers on a direct-action UIM claim. In

the trial court and here, the parties do not dispute that Barr is covered

by the policy that Farmers issued to Barr and that the policy includes

UIM coverage. Nor is there any dispute that Farmers was entitled to a

3No one disputes that Farmers gave Barr permission to settle his

claims against Pope. 3 credit of $40,000 against any UIM recovery that Barr might ultimately

obtain in his direct-action UIM claim against Farmers. In Barr’s direct-

action lawsuit against Farmers, Barr sought a determination under the

UDJA of his damages from his wreck with Pope, a declaration that the

damages fell within the coverage afforded him under his auto policy, and

attorney’s fees.

In July 2020, Farmers answered and after that, the parties engaged

in discovery for over a year. On December 7, 2021, Farmers offered to

settle with Barr for $100,000. The written offer of settlement isn’t in the

record, but we assume Farmers offered to settle Barr’s entire UIM claim

in return for a full release. Barr rejected Farmers’ offer the day the offer

was made. That said, no evidence in the record reveals whether a portion

of Farmers’ offer included some amount to account for Farmers’ exposure

to the award of attorney’s fees that Farmers had to Barr on Barr’s direct-

action UIM claim under the UDJA, since even if attorney’s fees are not

part of the damages that Barr could have recovered in a lawsuit against

Pope, under the UDJA trial courts are authorized to award attorney’s

4 fees on claims on which attorney’s fees may be recovered under the

UDJA. 4

Barr filed claims against Farmers based on the underinsured

motorist portion of his auto policy, claims arising from the rear-end

automobile collision that he had with Pope on October 12, 2018. With

Farmers’ permission, Barr and Pope’s insurance carrier settled the

claims Barr had against Pope for $30,000. Shortly after that, Barr then

sued Farmers and sought to recover on his claim under the UIM coverage

of his auto policy with Farmers.

In his petition, Barr sought declaratory relief under Chapter 37 of

the Texas Civil Practice and Remedies Code. 5 In seeking declaratory

relief, Barr asked for findings declaring that: (1) Curtis Pope’s negligence

proximately caused the wreck; (2) Pope was underinsured; and (3) Barr

was entitled to recover damages from Farmers that resulted from the

4See Allstate v. Irwin, 627 S.W.3d 263, 269-272 (Tex. 2021) (in a

case involving a direct-action UIM claim brought under the UDJA (Civil Practice and Remedies Code Chapter 37), explaining that the UDJA provides the statutory authorization required to award attorney’s fees and holding that the trial court did not abuse its discretion by awarding attorney’s fees). 5Tex. Civ. Prac. & Rem. Code Ann. §§ 37.001-.011 (the Uniform

Declaratory Judgments Act). 5 collision that fell within the coverage afforded under his policy,

“specifying the amount of damages, interest and court costs that

Defendant FARMERS is obligated to pay.” In addition, Barr’s petition

alleges that he was seeking to recover attorney’s fees “as authorized by

Chapter 37 of the Texas Civil Practice and Remedies Code[.]” 6 The UIM

coverage under Barr’s policy with Farmers shows Barr’s UIM coverage

was limited to a maximum amount per occurrence of $500,000.

The parties agreed to bifurcate Barr’s case into two phases, the first

of which was to be conducted before a jury so the jury could determine

whether Pope was negligent and if so, the amounts Barr was entitled to

recover in damages against Pope for the personal injuries and property

damages that the accident with Pope caused. The jury phase of the

bifurcated proceeding lasted three days. When that phase of the trial

concluded, the jury found: (1) that Pope was negligent and that his

negligence proximately caused the occurrence; and (2) that Barr suffered

various damages which, when added together, totaled $115,000. As

Farmers sees it, after accounting for the $30,000 settlement credit from

6See id. § 37.009 (“In any proceeding under this chapter, the court

may award costs and reasonable and necessary attorney’s fees as are equitable and just.”). 6 Barr’s settlement with Pope and for the $10,000 paid under Barr’s

Farmers policy’s coverage for PIP, “the jury verdict resulted in only

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Related

Ridge Oil Co., Inc. v. Guinn Investments, Inc.
148 S.W.3d 143 (Texas Supreme Court, 2004)
Reagan v. Vaughn
804 S.W.2d 463 (Texas Supreme Court, 1991)
Arthur Andersen & Co. v. Perry Equipment Corp.
945 S.W.2d 812 (Texas Supreme Court, 1997)
Bocquet v. Herring
972 S.W.2d 19 (Texas Supreme Court, 1998)
Susan Bobo v. Elezebeth Varughese
507 S.W.3d 817 (Court of Appeals of Texas, 2016)

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Farmers Texas County Mutual Insurance Co. v. Floyd Barr, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-texas-county-mutual-insurance-co-v-floyd-barr-texapp-2024.