In RE USAA GENERAL INDEMNITY COMPANY v. the State of Texas

Texas Supreme Court·Decided May 7, 2021·No. 20-0075·Published

Opinion

IN THE SUPREME COURT OF TEXAS ══════════ No. 20-0075 ══════════

IN RE USAA GENERAL INDEMNITY COMPANY, RELATOR

══════════════════════════════════════════════════ ON PETITION FOR WRIT OF MANDAMUS ══════════════════════════════════════════════════

JUSTICE BLAND, joined by JUSTICE LEHRMANN, dissenting.

The salient question presented in this case is whether the motorist who injured the plaintiff

was underinsured. The answer is simple: she was not.

The trial court’s post-verdict dismissal of the at-fault motorist does not set aside the jury’s

verdict establishing her liability and the amount of the damages she caused for purposes of

determining whether she was underinsured. Nor does it remove from consideration her agreement

to pay the plaintiff an amount that exceeds the jury’s verdict. Fundamentally, the plaintiff’s own

insurer has no underinsured-motorist liability in this case because the liable motorist and her

insurance carrier fully compensated the plaintiff for his injuries, as determined by the jury that

heard his case against her. The plaintiff’s receipt of payment for the damages found by the jury

from the at-fault motorist and his agreement to dismiss with prejudice his claim against that

motorist precludes his claim against his own carrier for underinsured-motorist coverage.

In rejecting this basic tenet, the Court ignores that USAA is one of three parties to this

single action. Likewise, its focus on the plaintiff’s dismissal and the timing of the plaintiff’s

insurer’s consent to be bound by the verdict neglects both the verdict’s force and effect and the

binding nature of the plaintiff’s dismissal. As a party to the lawsuit, the plaintiff’s insurer may seek judgment on the jury’s verdict. Absent any question of the verdict’s infirmity, the trial court’s

decision to disregard it in favor of another trial warrants mandamus relief. Because the Court

declines to grant relief, I respectfully dissent.

I

Sue Ann Baldor rear-ended Adam Reising in a car accident. Reising sued Baldor. Because

Baldor’s insurance coverage initially was limited to $30,000, and Reising alleged more than

$30,000 in damages, Reising also sued his own insurer, USAA General Indemnity Company,

seeking coverage under his underinsured-motorist policy for any covered amount that Baldor did

not pay.

Reising’s underinsured-motorist coverage applies when the coverage of the motorist-

defendant “is not enough to pay the full amount the covered person is entitled to recover as

damages.” The policy further provides that the coverage is for damages reduced by payments made

on behalf of the underinsured motorist: “[a]ny amount otherwise payable for damages under

UM/UIM Coverage shall be reduced by all sums paid or payable” by or on behalf of the person

legally responsible for those damages. Finally, “[a]ny judgment of damages arising out of a suit

brought without [USAA’s] written consent is not binding on [USAA].”

Baldor moved to bifurcate the trial and abate the case against USAA, and the trial court

granted her motion. Reising and Baldor proceeded to trial. The jury found Baldor 100%

responsible for the accident and awarded Reising $160,000 in damages.

Neither Reising nor Baldor challenged the verdict by, for example, moving for a new trial

or to set the verdict aside. Instead, Reising and Baldor agreed to settle their suit for $161,114.79.

They then moved in the trial court to dismiss Reising’s claim against Baldor with prejudice. At a

hearing on the motion and settlement, USAA moved for judgment on the verdict, which, it argued,

2 is dispositive of its liability given Baldor’s payment. The trial court refused to act on USAA’s

motion. The trial court then granted Reising’s motion to dismiss his claim against Baldor with

prejudice.

After the trial court dismissed Baldor from the suit with prejudice, USAA wrote to Reising

that it would be bound by the verdict. USAA again moved for judgment on the verdict. Without

explanation, the court refused and scheduled a second trial, in which Reising contends that he may

retry his claim against Baldor and submit her liability and his damages to another jury, solely for

the purpose of determining USAA’s liability for underinsured-motorist coverage.

II

For over a century, we have consistently held that a judge has a ministerial duty to enter

judgment on a verdict. 1 Under Texas Rule of Civil Procedure 300, the trial court “shall render

judgment” on a special verdict, 2 unless the verdict is “set aside or a new trial is granted, or

judgment is rendered notwithstanding verdict or jury finding.” 3

A trial court has “considerable discretion” to set aside a verdict and grant a new trial, for

example, in cases of a conflicting verdict or juror misconduct. 4 However, a trial court must state

its reasons—failing to do so is an abuse of discretion that warrants mandamus relief. 5

1 Hume v. Schintz, 36 S.W. 429, 430 (Tex. 1896) (orig. proceeding) (“The jury are the judges—the triors— of questions of fact. Their award, until set aside, is conclusive, and it has been held by this court that it is the imperative duty of the court, in the first instance, to give judgment in accordance with the verdict.”); see also Traywick v. Goodrich, 364 S.W.2d 190, 191 (Tex. 1963) (orig. proceeding) (“Where there is no irreconcilable conflict in the jury’s findings it is the ministerial duty of the Judge to enter a judgment on the verdict and the matter involves no judicial or discretionary powers.” (citing Gulf, C. & S. F. Ry. Co. v. Canty, 285 S.W. 296, 299 (Tex. 1926) (orig. proceeding) (collecting cases))). 2 “A special verdict is one wherein the jury finds the facts only on issues made up and submitted to them under the direction of the court.” TEX. R. CIV. P. 290. 3 TEX. R. CIV. P. 300. 4 In re Columbia Med. Ctr. of Las Colinas, 290 S.W.3d 204, 211 (Tex. 2009) (orig. proceeding) (citing TEX. R. CIV. P. 320, 326, 327). 5 See id. at 213 (holding that trial court’s order for a new trial without justification was “arbitrary and an abuse of discretion”).

3 The trial court in this case did not state a reason to justify its disregard of the jury’s verdict,

and on this record, no justification exists. When Reising dismissed Baldor from this suit, it did not

dissolve the verdict. Rather, Reising exchanged his right to enforce the verdict against Baldor for

the settlement amount that she and her insurer paid.

Reising’s dismissal with prejudice of his claim against Baldor does not dispense with

USAA’s right to seek judgment on the jury’s verdict. “Any party may prepare and submit a

proposed judgment to the court for signature.” 6 Abated or not, bifurcated or not, USAA is a party

to the case. If USAA’s proposed judgment conformed to the verdict, and the trial court had no

reason to set the verdict aside, then the trial court had no option but to enter judgment.

A

USAA’s proposed judgment conformed to the verdict. Underinsured-motorist coverage

compensates the insured for damages that he does not recover from the negligent driver or her

insurance company. 7 Under Reising’s policy, Reising may recover from USAA only the amount

that he is “legally entitled” to recover from Baldor, less any payments Baldor made to satisfy her

obligation. The jury awarded Reising $160,000.

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In RE USAA GENERAL INDEMNITY COMPANY v. the State of Texas, (Tex. 2021).

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