State Farm Lloyds v. Chesley E. Blacklock and Dianne Blacklock

CourtCourt of Appeals of Texas
DecidedSeptember 7, 2005
Docket10-04-00018-CV
StatusPublished

This text of State Farm Lloyds v. Chesley E. Blacklock and Dianne Blacklock (State Farm Lloyds v. Chesley E. Blacklock and Dianne Blacklock) 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
State Farm Lloyds v. Chesley E. Blacklock and Dianne Blacklock, (Tex. Ct. App. 2005).

Opinion

IN THE

TENTH COURT OF APPEALS

 

No. 10-04-00018-CV

State Farm Lloyds,

                                                                      Appellant

 v.

Chesley E. Blacklock and

Dianne Blacklock,

                                                                      Appellees


From the 249th District Court

Johnson County, Texas

Trial Court No. C200200131

MEMORANDUM  Opinion

    Chesley E. and Dianne Blacklock filed suit against State Farm Lloyds claiming that State Farm breached its contract by not fully paying their claim for damage to their home and foundation.  A jury found for the Blacklocks, and State Farm appeals.  Because we find that the Blacklocks’ experts’ opinions are unreliable and therefore no evidence, we reverse and render a take-nothing judgment in favor of State Farm.


Background

        Chesley and Dianne Blacklock owned a home in Johnson County for over 20 years.  During this time they experienced no major problems with their home.  However, in 2001 problems began to occur.  Doors in the Blacklocks’ home began rubbing against the door frames and rafters in the roof started pulling away from the ridge.  The Blacklocks observed cracks forming in the ceiling and walls, and cracks forming in the outside brick façade around the windows that continued on a downward path through the foundation.  According to Chesley, these cracks first manifested in the spring of 2001 and then progressed rapidly.  Suspecting that something was wrong with the foundation, the Blacklocks called Olshan, a foundation repair company.

    After testing, Olshan advised the Blacklocks that they had a plumbing leak and to contact their homeowners’ insurance company.  The Blacklocks contacted State Farm, their insurance carrier, and State Farm sent American Leak Detection Company to their property.  American Leak confirmed Olshan’s assessment that there was a plumbing leak.  The day the leak was being repaired, Jeni McEwen, a State Farm adjuster, sent an engineer from Norseman Engineering to assess possible damage to the house’s foundation.  Norseman concluded that a small portion of the foundation was damaged due to the plumbing leak, causing interior damage to a bathroom and a bedroom.  Norseman reported that damage to the rest of the house was outside the “area of influence” of the plumbing leak.  This damage, Norseman concluded, was caused by changes in the moisture content of the soil due to environmental conditions and not by the plumbing leak.

        Based on Norseman’s conclusions, State Farm offered to pay for the interior damage in the “area of influence,” namely the bathroom and bedroom.  The Blacklocks disagreed with Norseman’s conclusions and filed suit against State Farm and its adjustor, McEwen, for breach of contract and violations of the Texas Insurance Code and the Texas Business and Commerce Code.

    Before trial, State Farm filed a motion to exclude the opinions and testimony of Jeffrey Lineberger, an engineer and the Blacklocks’ expert witness.  After a Daubert/Robinson hearing, the trial court denied State Farm’s motion.  State Farm renewed its objection to Lineberger at trial.  When the Blacklocks introduced, through Lineberger’s testimony, the report and repair plan of their expert, James Linehan, State Farm objected to the reliability of Linehan’s report.  State Farm also objected to the testimony of the Blacklocks’ damages expert, Gary Pennington, because his testimony was based entirely upon the report and repair plans of Lineberger and Linehan, both of whom State Farm believed to be unreliable.  These objections were overruled.

        The jury found that State Farm failed to comply with the terms of the homeowners’ policy and awarded the Blacklocks over $67,000 in breach of contract damages, over $30,000 in statutory damages, $100,000 additional damages for unconscionable conduct, and attorneys’ fees.  The jury also found that the Blacklocks should take nothing against McEwen.

    On appeal, State farm argues that that trial court erred by (1) admitting the testimony of the Blacklocks’ experts because their opinions were unreliable as a matter of law and constituted no evidence of causation or damages and (2) entering judgment of $100,000 of additional damages because the jury actually found zero damages with regards to unconscionable conduct and there was no evidence to support unconscionable conduct.     

Expert Testimony

    State Farm argues in their first issue that that trial court erred in admitting the testimony of the Blacklocks’ experts, Lineberger and Pennington, and an expert report generated by Linehan because their opinions were unreliable and constituted no evidence of causation or damages.

Standard of Review

When reviewing a no-evidence challenge, we “view the evidence in a light that tends to support the finding of the disputed fact and disregard all evidence and inferences to the contrary.”  In determining whether an expert’s testimony constitutes some evidence, however, “an expert’s bare opinion will not suffice” and “[t]he substance of the testimony must be considered.”  Further, “[t]he underlying data should be independently evaluated in determining if the opinion itself is reliable.”  The proponent of the evidence bears the burden of demonstrating that the expert’s opinion is reliable.  If the expert’s testimony is not reliable, it is not evidence.

Kerr-McGee Corp. v. Helton, 133 S.W.3d 245, 253 (Tex. 2004) (citations omitted).

    A two-part test governs whether expert testimony is admissible:  (1) the expert must be qualified; and (2) the testimony must be relevant and based on a reliable foundation.  Helena Chem. Co. v. Wilkins, 47 S.W.2d 486, 499 (Tex. 2001).  A trial court is not to determine whether an expert’s conclusions are correct, but only whether the analysis used to reach those conclusions is reliable.  Gammill v. Jack Williams Chevrolet, Inc., 972 S.W.2d 713, 728 (Tex. 1998).

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Related

Kerr-McGee Corp. v. Helton
133 S.W.3d 245 (Texas Supreme Court, 2004)
United Services Automobile Ass'n v. Gordon
103 S.W.3d 436 (Court of Appeals of Texas, 2003)
Allstate Texas Lloyds v. Mason
123 S.W.3d 690 (Court of Appeals of Texas, 2003)
Merrell Dow Pharmaceuticals, Inc. v. Havner
953 S.W.2d 706 (Texas Supreme Court, 1997)
EI Du Pont De Nemours & Co. v. Robinson
923 S.W.2d 549 (Texas Supreme Court, 1996)
Hernandez v. State
116 S.W.3d 26 (Court of Criminal Appeals of Texas, 2003)
Martinez v. City of San Antonio
40 S.W.3d 587 (Court of Appeals of Texas, 2001)
Gammill v. Jack Williams Chevrolet, Inc.
972 S.W.2d 713 (Texas Supreme Court, 1998)
in the Interest of J.B., a Child
93 S.W.3d 609 (Court of Appeals of Texas, 2002)
McClelland v. Motley
47 S.W.2d 486 (Court of Appeals of Texas, 1932)

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Bluebook (online)
State Farm Lloyds v. Chesley E. Blacklock and Dianne Blacklock, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-lloyds-v-chesley-e-blacklock-and-dianne-texapp-2005.