Warwick Towers Council of Co-Owners Ex Rel. St. Paul Fire & Marine Insurance Co. v. Park Warwick, L.P.

298 S.W.3d 436, 2009 Tex. App. LEXIS 7851, 2009 WL 3210926
Court of Appeals of Texas·Decided October 8, 2009·No. 14-05-00254-CV·Published·Cited by 33 cases

Opinion

OPINION ON REMAND

WILLIAM J. BOYCE, Justice.

Warwick Towers Council of Co-Owners (the “Council”), acting by and through St. Paul Fire & Marine Insurance Company, appeals from a summary judgment granted in favor of Park Warwick L.P., Park Warwick Investments, L.L.C., and Park *439 Hotel Investments, L.L.C. (collectively, the “Hotel Appellees”)- We affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.

Background

The Warwick Hotel and the Warwick Towers condominium are located across Fannin Street from one another in Houston. Both buildings were damaged in June 2001 when heavy rains from Tropical Storm Allison inundated the city.

St. Paul contends the hotel had a flood barrier system in place in June 2001 to prevent water at street level from pouring down a loading dock ramp into the hotel’s basement. St. Paul alleges the hotel failed to use this barrier during the storm, which allowed water to enter the hotel’s basement; travel through a connecting tunnel that runs under Fannin Street; reach the condominium’s basement; and cause extensive damage. See Warwick Towers Council of Co-Owners v. Park Warwick, L.P., 244 S.W.3d 838 (Tex.2008) (per curiam). The Hotel Appellees dispute whether such a barrier existed in June 2001.

The Council and others sued the Hotel Appellees and asserted claims for negligence, nuisance, and trespass based on water damage to the condominium from Tropical Storm Allison. St. Paul also asserted a subrogation claim against the Hotel Appellees based on payments it made as the condominium’s insurer for water damage in connection with the storm. See generally Ortiz v. Great S. Fire and Cas. Ins. Co., 597 S.W.2d 342, 344 (Tex.1980). St. Paul’s subrogation claim was predicated on causes of action against the Hotel Appellees for negligence, nuisance, and trespass.

The Hotel Appellees filed a motion for partial summary judgment. Among other grounds, they asserted that St. Paul’s claim is foreclosed by a waiver of subrogation contained in a 1980 easement agreement. The trial court signed an interlocutory order in May 2004 granting partial summary judgment in favor of the Hotel Appellees on St. Paul’s subrogation claim, and on the Council’s nuisance and trespass claims. The Council’s negligence claim remained unresolved.

In February 2005, the trial court signed an order dismissing all causes of action asserted by the Council and other plaintiffs against the Hotel Appellees with prejudice pursuant to a settlement. Dismissal of the Council’s causes of action did not extinguish St. Paul’s subrogation claim because an insurer becomes a pro tanto owner of the insured’s cause of action when the insurer pays part of the insured’s loss. See Prudential Prop. & Cas. Co. v. Dow Chevrolet-Olds, Inc., 10 S.W.3d 97, 102-03 (Tex.App.-Texarkana 1999, pet. dism’d); see also In re Romero, 956 S.W.2d 659, 661 (Tex.App.-San Antonio 1997, orig. proceeding) (from point of payment forward, viability of insurer’s cause of action does not rise and fall with fate of its insured’s cause of action) (citing Thoreson v. Thompson, 431 S.W.2d 341, 347 (Tex.1968)); Cox v. Realty Dev. Corp., 748 S.W.2d 492, 494 (Tex.App.-Dallas 1988, no writ) (dismissal of insured’s cause of action did not extinguish insurer’s action).

The February 2005 order caused the interlocutory summary judgment on St. Paul’s subrogation claim to become final and appealable. See Park Place Hosp. v. Estate of Milo, 909 S.W.2d 508, 510 (Tex.1995). 1 St. Paul filed a notice of appeal in *440 its insured’s name. The notice of appeal did not name St. Paul.

This court dismissed St. Paul’s appeal, concluding that a notice of appeal filed solely in the insured’s name was ineffective to perfect an appeal as to that portion of the trial court’s final judgment addressing St. Paul’s separate subrogation claim. Warwick Towers Council of Co-Owners v. Park Warwick, L.P., 218 S.W.3d 149 (Tex.App.-Houston [14th Dist.] 2007), rev’d, 244 S.W.3d 838 (Tex.2008) (per curiam). The Texas Supreme Court reversed this court’s judgment and remanded, holding that St. Paul made a bona fide attempt to appeal from the dismissal of its subrogation claim; should have been allowed to amend the notice of appeal to name itself as the appellant; and should have its appeal decided on the merits. Warwick Towers Council of Co-Owners, 244 S.W.3d at 839-40. 2

We now address the merits of St. Paul’s appeal challenging the trial court’s grant of summary judgment against St. Paul on its subrogation claim arising in connection with water damage to the Warwick Towers condominium during Tropical Storm Allison.

Analysis

St. Paul raises six issues on appeal challenging the trial court’s order granting summary judgment. The first five issues assail the grant of summary judgment on all causes of action asserted by St. Paul as subrogee based on a waiver of subrogation contained in a 1980 easement agreement. The sixth issue assails the grant of summary judgment on the merits of the nuisance and trespass causes of action.

The Hotel Appellees sought summary judgment under the traditional summary judgment standard. See Tex.R. Civ. P. 166a(c). They did not rely upon Rule 166a(i) or file a hybrid motion invoking both Rules 166a(c) and 166a(i). They attached the following documents to their summary judgment motion: (1) an affidavit signed by Ron Hoyl, the vice president of appellee Park Hotel Investments, LLC; (2) the 1980 easement agreement; (3) a 1983 amendment to the 1980 easement agreement; and (4) the Warwick Towers Declaration of Condominium.

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Warwick Towers Council of Co-Owners Ex Rel. St. Paul Fire & Marine Insurance Co. v. Park Warwick, L.P., 298 S.W.3d 436, 2009 Tex. App. LEXIS 7851, 2009 WL 3210926 (Tex. Ct. App. 2009).

298 S.W.3d 436 (Warwick Towers Council of Co-Owners Ex Rel. St. Paul Fire & Marine Insurance Co. v. Park Warwick, L.P.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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