Redwood Fire and Casualty Insurance Company v. Robert Reyna, et al.

CourtDistrict Court, S.D. Texas
DecidedMarch 26, 2026
Docket4:24-cv-03588
StatusUnknown

This text of Redwood Fire and Casualty Insurance Company v. Robert Reyna, et al. (Redwood Fire and Casualty Insurance Company v. Robert Reyna, et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redwood Fire and Casualty Insurance Company v. Robert Reyna, et al., (S.D. Tex. 2026).

Opinion

UNITED STATES DISTRICT COURT March 26, 2026 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

REDWOOD FIRE AND CASUALTY INSURANCE § COMPANY, § Plaintiff, § § CIVIL NO. 4:24-CV-03588 VS. § § ROBERT REYNA, et al., § Defendants. §

ORDER1

This is a declaratory judgment action seeking a declaration of the parties’ rights and obligations under an automobile insurance contract. Pending before the Court is Plaintiff Redwood Fire and Casualty Insurance Company’s (“Plaintiff” or “Redwood”) motion for summary judgment seeking a declaration that Robert and Mary Reyna (“Defendants” or “Reyna”) cannot recover Uninsured/Under Insured Motorist (“UM/UIM”) benefits under the policy and, therefore, the Reynas are not entitled to any relief on their counterclaim. ECF No. 20 at 5.2 Having carefully

1 On March 5, 2025, based on the parties’ consent, the case was transferred to this Court to conduct all proceedings pursuant to 28 U.S.C. § 636(c). Order Transferring, ECF No. 15. 2 Defendants filed a response, ECF No. 21, Plaintiff filed a reply, ECF No. 23, and Supplementary Evidence, ECF No. 25. Defendant filed a Sur-reply. ECF No. 26. 1 reviewed the pleadings, briefing, evidence, and applicable law, the Court finds that Plaintiff has failed to carry its summary judgment burden and denies Plaintiff’s

motion. I. BACKGROUND These are the undisputed facts. Robert Reyna was in a car accident on

October 12, 2011, and he filed a claim with Plaintiff, his insurer. ECF No. 20 at 9; ECF No. 21 at 8. On October 25, 2011, Plaintiff informed Defendants that it had assigned claim investigation to The Littleton Group, who then advised Plaintiff that Barbara Rankin would handle the file for Littleton. ECF No. 21-1 at 21–22. The next

day, the law firm Defendants hired for bodily injuries related to the accident, Bannwart & Associates,3 advised Rankin that the Reynas had retained it, and requested information for making a Personal Injury Protection (“PIP”) coverage

claim. Id. at 30. Over the next two years, Rankin managed the file for PIP purposes, regularly noting communication difficulties with Bannwart. Id. at 24–27, 31–32, 44– 45, 58–59, 74, 76–77. After months of silence, she notified Bannwart on March 7, 2012, that she would close the PIP file three weeks later if she did not hear from

Bannwart. Id. at 80–81. After those three weeks passed in silence, she closed the PIP file on March 28, 2012. Id. at 86–87. In July 2013, Bannwart sent the requested PIP

3 A different law firm represents Defendants in this case. 2 documents. Id. at 93. Plaintiff asked Rankin to reopen Littleton’s file and process the claim. Id. at 91–92. A PIP check issued on September 26, 2013. Id. at 96.

Two years passed and on June 29, 2015, Bannwart sent Littleton a letter, notifying her Defendants intended to pursue a UM/UIM claim. Id. at 98–100; ECF No. 20-3 at 1; ECF No. 20-4 at 1. Rankin replied in acknowledgement and stated

Littleton would “await further contact” from Bannwart as to settlement efforts with the other driver. ECF No. 20-4 at 1; ECF No. 21-1 at 99. Eleven days later, Bannwart requested Plaintiff reissue the September 2013 PIP check because it had expired. ECF No. 21-1 at 101. Rankin’s reports to Plaintiff show there was no further

communication from Bannwart between October 27, 2015, and February 25, 2016. Id. at 105–06, 111–12, 114–15, 117–18. Rankin sent Bannwart a letter dated February 25, 2016, requesting an update on settlement. Id. at 119–20; ECF No. 20-

5 at 1–2. Rankin’s March 2016 report to Plaintiff stated she received no response as of that date. ECF No. 21-1 at 122–23. She sent another letter to Bannwart that same day. Id. at 124–25; ECF No. 20-6 at 1–2. On April 6, 2016, Plaintiff instructed Rankin to close her file and advise

Bannwart that all future correspondence should be to Plaintiff’s claims examiner, Jon Deacon. ECF No. 21-1 at 126. She did so and sent a letter to Bannwart, on April 11, 2016, that provided Deacon’s contact information and then sent Deacon a

final report. Id. at 129–32; ECF No. 20-7 at 1–2. Two weeks later, on April 22, 2016, 3 Rankin emailed Deacon with attachments related to Defendants’ settlement with the other driver. ECF No. 21-1 at 134. The settlement documents were dated July 22,

2015, nine months earlier. ECF No. 20-8 at 20, 31. A UM/UIM demand letter followed, dated August 12, 2016. ECF No. 20-9 at 1; ECF No. 21-1 at 138. Plaintiff responded on August 31, 2016, requesting documents to fully evaluate the claim.

ECF No. 20-10 at 1–2; ECF No. 21-1 at 145–46. Bannwart answered on September 14, 2016, stating in relevant part that the requested documents would be provided as applicable. ECF No. 20-11 at 1; ECF No. 21-1 at 153. Plaintiff’s October 5, 2016 reply reiterated the need for documents

“to fully evaluate the demand presented.” ECF No. 20-12 at 1–2; ECF No. 21-1 at 161–62. In July 2017, Plaintiff hired outside counsel, Goldman and Associates, who notified Bannwart it had been retained “to assist [Redwood] in addressing” the

Reynas’ UM/UIM claim. ECF No. 21-1 at 198. Goldman advised in that same letter that since Bannwart’s September 2016 letter, there had been “no further correspondence or contact” regarding the claim. Id. Bannwart responded on October 20, 2016, attaching what they had provided Plaintiff in September 2016. Id.

at 176–78. At some point between October 20, 2017, and October 1, 2018, Bannwart asked Goldman whether Plaintiff continued to assert a coverage defense. Id. at 187. On October 1, 2018, Goldman advised that Plaintiff was “in the process of

evaluating and reviewing all of the medical records and bills” and asked for further 4 medical documentation. Goldman sent a follow up on November 29, 2018. Id. at 194. Bannwart failed to respond for six years, until July 31, 2024, when he sent

another UM/UIM demand letter. Id. at 179–85. This action for declaratory judgment followed two months later, on September 24, 2024. Pl.’s Original Compl., ECF No. 1. Defendants filed an answer and

counterclaim seeking declaratory judgment and amended both. Defs.’ First Am. Answer & Countercl., ECF No. 13. Plaintiff now seeks summary judgment on its declaratory judgment action and the Reynas’ counterclaim. Pl.’s Mot., ECF No. 20. II. SUMMARY JUDGMENT STANDARD

Pursuant to Rule 56 of the Federal Rules of Civil Procedure, “[s]ummary judgment is appropriate ‘if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.’”

Ballentine v. Broxton Grievance Dep't Vicki Cundiff, 155 F.4th 462, 467 (5th Cir. 2025) (quoting FED. R. CIV. P. 56(a)). “A dispute as to a material fact is ‘genuine’ if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. (internal quotation marks omitted). “A fact is ‘material’ if its resolution

in favor of one party might affect the outcome of the lawsuit under governing law.” Saketkoo v. Adm’rs of Tulane Educ. Fund, 31 F.4th 990 (5th Cir. 2022) (internal quotation marks omitted).

In seeking summary judgment, the “moving party ‘always bears the initial 5 responsibility of informing the district court of the basis for its motion’ and pointing to record evidence demonstrating that there is no genuine dispute of material fact.”

Sweat v. Hou. Methodist Hosp., No. CV H-24-775, 2025 WL 2697111, at *3 (S.D. Tex. Sept.

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