Independent Specialty Insurance Company v. Blossoms Montessori School Inc.

CourtCourt of Appeals of Texas
DecidedJune 5, 2025
Docket01-23-00840-CV
StatusPublished

This text of Independent Specialty Insurance Company v. Blossoms Montessori School Inc. (Independent Specialty Insurance Company v. Blossoms Montessori School Inc.) 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
Independent Specialty Insurance Company v. Blossoms Montessori School Inc., (Tex. Ct. App. 2025).

Opinion

Opinion issued June 5, 2025.

In the

Court of Appeals for the

First District of Texas ———————————— NO. 01-23-00840-CV ——————————— INDEPENDENT SPECIALTY INSURANCE COMPANY, Appellant v. BLOSSOMS MONTESSORI SCHOOL INC., Appellee

On Appeal from the 151st District Court Harris County, Texas Trial Court Case No. 2023-23652

MEMORANDUM OPINION

Appellant Independent Specialty Insurance Company (ISIC) appeals from the

trial court’s order denying its motion to compel arbitration in the suit filed against it

by appellee Blossoms Montessori School Inc. (Blossoms). ISIC contends that the

trial court erred in denying its motion to compel arbitration. We affirm.

Background

A. Trial Court

Blossoms owns a commercial building located in Spring, Texas, and ISIC

underwrote the property insurance policy on that building (the Policy). Blossoms

submitted a claim to ISIC after its property was allegedly damaged in a windstorm

and hailstorm. ISIC denied coverage.

In April 2023, Blossoms sued ISIC and ISIC’s adjuster, Brian York, asserting

claims for wrongful denial of an insurance claim, breach of contract, violations of

the Texas Insurance Code, and breach of the duty of good faith and fair dealing.

Blossoms alleged ISIC wrongfully denied its claim, and that Blossoms was damaged

by a resulting delay in repairs to its property. Blossoms further alleged the inspection

used by ISIC was substandard because York was improperly trained and failed to

perform a thorough investigation of the claim.

ISIC and York answered, asserting a general denial and several affirmative

defenses. In October 2023, the trial court granted York’s motion to dismiss and ISIC

filed a motion to compel arbitration.1 In its motion to compel arbitration, ISIC

1 In its motion, ISIC referred to and attached an August 25, 2023 letter from ISIC’s counsel to Blossoms’ counsel in which ISIC gave notice of its invocation of the Policy’s arbitration clause and noted that ISIC’s counsel had informed Blossoms’ counsel on July 3, 2023 of its intent to invoke the arbitration clause.

2 invoked the arbitration agreement in section H(4) of the Policy, which states, in

pertinent part, that:

All matters in dispute between you and us . . . in relation to this insurance, including this policy’s formation and validity, and whether arising during or after the period of this insurance, shall be referred to an Arbitration Tribunal in the manner described below.

Blossoms opposed the motion, arguing that the arbitration agreement is

unenforceable because the Policy contains conflicting dispute resolution provisions

and because the arbitration agreement is unconscionable.

The trial court denied ISIC’s motion to compel arbitration without stating the

grounds for its denial, and the record on appeal includes no factual findings

associated with that ruling. This appeal followed.

B. Appeal

In its initial brief on appeal, ISIC raises two issues: (1) “[w]hether the

arbitration clause in the [Policy] contains a delegation provision transferring the

threshold determination of whether the arbitration clause is valid and enforceable

from the District Court to the Arbitration Tribunal”; and (2) “[w]hether Blossoms

sustained its burden of proving substantive unconscionability to invalidate the

delegation provision.” ISIC takes the position that the Policy’s arbitration agreement

contains a delegation clause in which the parties agreed to delegate to arbitration all

threshold determinations including the validity and enforceability of the arbitration

3 agreement. ISIC does not address Blossoms’ argument in the trial court that the

arbitration agreement is unenforceable because the Policy contains conflicting

dispute resolution provisions and because the arbitration agreement is

unconscionable. ISIC purports to summarize Blossoms’ unconscionability argument

by quoting at length from this Court’s decision in Taylor Morrison of Tex., Inc. v.

Goff, No. 01-21-00404-CV, 2022 WL 1085714 (Tex. App.—Houston [1st Dist.]

Apr. 12, 2022, no pet.) (mem. op.). The language quoted by ISIC includes a

recitation of factors that this Court considers in determining whether an arbitral

forum is an adequate and accessible substitute to litigation. See Goff, 2022 WL

1085714, at *12-13. But ISIC does not address those factors because, it argues,

Blossoms has made no unconscionability argument that is specific to the alleged

delegation clause.

In its brief on appeal, Blossoms argues, as it did in the trial court, that the

parties’ arbitration agreement is unenforceable because it conflicts with another

dispute resolution provision in the Policy and because it is unconscionable.

Blossoms also makes an argument that it did not make in the trial court: that ISIC

waived its right to invoke the arbitration clause through its invocation of the judicial

process.

In its reply brief on appeal, ISIC argues that there is no conflicting provision

in the Policy, that the issue of whether the arbitration agreement as a whole is

4 unconscionable is “not the question” and that Blossoms has offered no evidence that

the alleged delegation clause in the arbitration agreement is unconscionable, and that

Blossoms’ waiver argument is untimely and incorrect.

Discussion

We affirm the trial court’s denial of ISIC’s motion to compel arbitration

because, in its opening brief on appeal, ISIC did not challenge all independent

grounds argued by Blossoms in the trial court that, if meritorious, would fully

support the trial court’s ruling.

A. Applicable Law

On appeal, an appellant must attack all independent bases or grounds that, if

meritorious, would fully support a complained-of trial court order. Dao v. Mission

Bend Homeowners Ass’n, Inc., 667 S.W.3d 304, 319 (Tex. App.—Houston [1st

Dist.] 2022, no pet.); Britton v. Tex. Dep’t of Crim. Just., 95 S.W.3d 676, 681 (Tex.

App.—Houston [1st Dist.] 2002, no pet.). If on appeal an appellant does not attack

all independent bases or grounds that, if meritorious, would fully support the trial

court’s ruling, then we must affirm the ruling. Dao, 667 S.W.3d at 319; Britton, 95

S.W.3d at 680-81 (noting that “we need not decide” if unchallenged ground is

meritorious). “This rule is based on the premise that an appellate court normally

cannot alter an erroneous judgment in favor of an appellant in a civil case who does

not challenge that error on appeal.” Britton, 95 S.W.3d at 681. Therefore, where an

5 appellant does not attack an independent ground that, if meritorious, would fully

support the trial court’s ruling, then (1) we accept the unchallenged independent

ground as fully supporting the trial court’s ruling and (2) any error in the grounds

challenged on appeal is harmless because the unchallenged independent ground fully

supports the ruling. Mass. Bay Ins. Co. v. Adkins, 615 S.W.3d 580, 612 (Tex. App.—

Houston [1st Dist.] 2020, no pet.) (citing Britton, 95 S.W.3d at 681 (noting for

example that, if summary judgment may have been rendered, properly or

improperly, on ground not challenged, judgment must be affirmed)).

Texas courts have applied the unchallenged independent ground rule when the

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