My Pad Properties LLC v. State Farm Lloyds

CourtDistrict Court, W.D. Texas
DecidedMarch 2, 2026
Docket5:24-cv-00512
StatusUnknown

This text of My Pad Properties LLC v. State Farm Lloyds (My Pad Properties LLC v. State Farm Lloyds) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
My Pad Properties LLC v. State Farm Lloyds, (W.D. Tex. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

MY PAD PROPERTIES LLC, § § Plaintiff, § SA-24-CV-00512-FB-ESC § vs. § § STATE FARM LLOYDS, § § Defendant. §

REPORT AND RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE

To the Honorable United States District Judge Fred Biery: This Report and Recommendation concerns the following dispositive motions: Plaintiff’s Motion for Partial Summary Judgment [#27] and Defendant’s Motion for Summary Judgment [#28]. All dispositive pretrial matters in this case have been referred to the undersigned for disposition pursuant to Western District of Texas Local Rule CV-72 and Appendix C [#4]. The undersigned has authority to enter this recommendation pursuant to 28 U.S.C. § 636(b)(1)(B). For the reasons set forth below, the undersigned will recommend Defendant’s Motion for Summary Judgment [#28] be GRANTED. Therefore, Plaintiff’s Motion for Partial Summary Judgment [#27] should be DISMISSED AS MOOT. I. Background This first-party insurance dispute arises out of a claim for damage to a rental property owned by Plaintiff My Pad Properties LLC (“My Pad”). When the tenant occupying the property moved out on July 20, 2023, My Pad allegedly found damage it believed to be the result of vandalism and/or malicious mischief and filed a claim with Defendant State Farm Lloyds (“State Farm”), its insurer, regarding broken doors, holes in the walls, a vandalized A/C unit, and water damage throughout the property. My Pad represents that the water damage was the result of an intentional tub overflow by either its tenant or another individual engaged in vandalism. And My Pad contends that the other damage was also the result of vandalism. State Farm inspected the property and determined the damage was excluded by the terms of the policy because some

damage was due to a water line leak pre-dating the policy period, and the remainder of the damage was attributable to wear and tear or lack of maintenance, which are causes of damage excluded from coverage by the policy. My Pad filed this suit, alleging that State Farm wrongly denied its insurance claim and asserting causes of action for breach of contract, violations of the Texas Insurance Code, and breach of the duty of good faith and fair dealing. My Pad has filed a motion for partial summary judgment, arguing that its claim is covered under the plain language of the insurance policy and that State Farm’s denial of its claim, misrepresentation of the policy’s terms, and failure to fully investigate My Pad’s claim violate contractual and extracontractual duties under Texas law as a matter of law. My Pad

requests partial summary judgment on liability and a trial to determine which damages were caused by covered perils under the insurance policy. State Farm has filed a cross-motion for summary judgment, contending that My Pad cannot segregate damages between losses that are allegedly covered by the insurance policy and losses attributable to excluded causes or causes occurring outside of the policy period, such as the water damage. In the alternative, State Farm argues it is entitled to partial summary judgment on My Pad’s extracontractual claims because the evidence demonstrates there is a bona fide dispute as to the insurance claim. Responses and replies have been filed to both motions. The motions are ripe for the Court’s review. II. Summary Judgment Standard Summary judgment is appropriate under Rule 56 of the Federal Rules of Civil Procedure only “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S.

317, 322 (1986); see also Fed. R. Civ. P. 56(c). A dispute is genuine only if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). The party moving for summary judgment bears the initial burden of “informing the district court of the basis for its motion” and “identifying those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp., 477 U.S. at 323. Once the movant carries its burden, the burden shifts to the nonmoving party to establish the existence of a genuine issue for trial. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986); Wise v. E.I. Dupont de Nemours & Co., 58 F.3d 193, 195 (5th Cir.

1995). The non-movant must respond to the motion by setting forth particular facts indicating there is a genuine issue for trial. Miss. River Basin Alliance v. Westphal, 230 F.3d 170, 174 (5th Cir. 2000). The parties may satisfy their respective burdens by tendering depositions, affidavits, and other competent evidence. Topalian v. Ehrman, 954 F.2d 1125, 1131 (5th Cir. 1992). When parties file cross-motions for summary judgment, the Court reviews “each party’s motion independently, viewing the evidence and inferences in the light most favorable to the nonmoving party.” Cooley v. Hous. Auth. of City of Slidell, 747 F.3d 295, 298 (5th Cir. 2014) (quoting Ford Motor Co. v. Tex. Dep’t of Transp., 264 F.3d 493, 498 (5th Cir. 2001)). “After the non-movant has been given the opportunity to raise a genuine factual issue, if no reasonable juror could find for the non-movant, summary judgment will be granted.” Westphal, 230 F.3d at 174 (citing Celotex Corp. 477 U.S. at 322). III. Summary Judgment Record The summary-judgment record sets forth the following disputed and undisputed facts. State Farm issued Rental Dwelling Policy No. 90-E4-F406-0 (“the Policy”) to My Pad, insuring

My Pad’s rental property located at 5514 Little Creek Street, San Antonio, Texas, from June 4, 2023, to June 4, 2024. (Policy [#27-1], at 2; Lee Decl. [#28-1], at ¶ 2.) The Policy provides coverage for “property damage” to a covered dwelling. (Policy [#27-1], at 22.) “Property damage” is defined as “physical damage to or destruction of tangible property,” but does not include damages due to theft or conversion. Id. The following portion of the Policy is relevant to My Pad’s vandalism claim, including losses claimed based on water damage throughout the apartment, as well as State Farm’s denial of My Pad’s claim based on wear, tear, and lack of maintenance: SECTION I – LOSSES NOT INSURED 1. We do not insure for loss to the property described in Coverage A and Coverage B either consisting of, or directly and immediately caused by, one or more of the following:. . . g. vandalism and malicious mischief or breakage of glass and safety glazing materials if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant;. . . i.

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My Pad Properties LLC v. State Farm Lloyds, Counsel Stack Legal Research, https://law.counselstack.com/opinion/my-pad-properties-llc-v-state-farm-lloyds-txwd-2026.