Whitson v. Harris

792 S.W.2d 206, 1990 Tex. App. LEXIS 1412, 1990 WL 79083
CourtCourt of Appeals of Texas
DecidedJune 13, 1990
Docket3-88-076-CV
StatusPublished
Cited by15 cases

This text of 792 S.W.2d 206 (Whitson v. Harris) 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
Whitson v. Harris, 792 S.W.2d 206, 1990 Tex. App. LEXIS 1412, 1990 WL 79083 (Tex. Ct. App. 1990).

Opinion

ABOUSSIE, Justice.

Appellants John and Freeda Whitson appeal the granting of a summary judgment in favor of appellee, receiver for First United Life Insurance Company of America. We will reverse the judgment of the trial court and remand the cause for trial.

In 1980, Mrs. Whitson sustained an injury for which appellants claimed the benefits provided under a group health insurance policy issued by First United Life Insurance Company of America. Before appellants filed their claim, the insurance company had been placed in receivership. The receivership proceeding was pending in Travis County. By its order of March 30, 1981, the 250th District Court of Travis County appointed appellee, then statutory liquidator for the State Board of Insurance, as temporary receiver and temporarily enjoined all persons from commencing or prosecuting any claim against the company and/or the receiver, except in the pending receivership proceedings.

By letter dated October 12, 1982, the receiver denied appellants’ claim on the ground that it was excluded from coverage under the policy. The letter informed appellants that they could appeal the rejected claim in the court in which the receivership proceeding was pending. The letter further informed appellants that they were required to bring any appeal within three months after service of the notice contained in the rejection letter.

Appellants filed the underlying action in the district court of Gray County on January 11, 1983. Appellee interposed a plea of privilege. After a hearing on April 12, 1983, the Gray County district court sustained the receiver’s plea and ordered the cause transferred to the 250th District Court of Travis County. On December 4, 1984, the Seventh Court of Appeals affirmed the ruling. Whitson v. Harris, 682 S.W.2d 423 (Tex.App.1984, no writ).

On October 30, 1986, at appellee’s request, the cause finally was transferred to Travis County. Appellee then successfully moved for summary judgment. The basis for summary judgment asserted in the motion was that appellants’ claim was final and not subject to review because appellants had not brought their action in the court where the receivership proceeding was pending within three months after notice of its denial. Texas Ins.Code Ann. art. 21.28, § 3(h) (Supp.1990), the controlling statute, provides:

The receiver shall have the discretion to approve or reject any claim filed against the insurer. Objections to any claim not rejected may be made by any party interested, by filing the objections with the receiver, who shall forthwith present them to the court for determination after notice and hearing. Upon the rejection of each claim either in whole or in part, the receiver shall notify the claimant of such rejection by written notice. Action upon a claim so rejected must be brought in the court in which the delinquency proceeding is pending within three (3) months after service of notice; otherwise the action of the receiver shall be final and not subject to review. (Emphasis added.)

In reviewing a motion for summary judgment, the reviewing court is to determine whether the movant has shown that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985). We must take as true all evidence favoring the non-movant, and indulge every reasonable inference and resolve every doubt in favor of the non-movant. Id. at 549.

Appellants responded to the motion by asserting that “the statute of limitations has been tolled ...; the case was filed within the three month period; the documentation offered by [appellee] ... as to when [appellants’] attorney received the rejection letter is not true or correct regarding its authenticity.” On appeal, appel *208 lants further complain that there is a material issue concerning when they discovered the “irregularities” in the notice to them that the receiver rejected the claim. They also attempt to discuss a claim they allegedly filed in 1988 after the hearing on the motion for summary judgment. Neither of these arguments was asserted in the trial court and cannot be raised for the first time on appeal. City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 676-77 (Tex.1979).

The proof shows that appellee, through his attorney, sent a letter to appellants’ attorney, with a copy to appellant Freeda Whitson, by certified mail on October 12, 1982. Appellants do not suggest that the notice to them was required to be sent by certified mail. Appellants do not deny that appellee sent them notice of the rejection by certified mail nor do they deny that they received written notice. Rather, appellants seek to challenge the authenticity of appel-lee’s proof that they received notice. Appellants suggest that the signature on the postal return receipt card showing receipt of the rejection notice, purportedly that of their attorney, may have been “forged.” Appellants allude further to other alleged deficiencies in the postal card receipt. They also complain that the receiver did not directly send the notice.

The summary judgment record conclusively establishes that appellee gave appellants written notice ■ of rejection of their claim. Appellants’ original petition was filed January 11, 1983; it admits receipt of notice in October 1982. Their first amended original petition, filed March 2, 1983, alleges that appellee finally denied their claim on October 13, 1982. At the plea of privilege hearing on April 12, 1983, appellants’ attorney entered into evidence the October 12th denial letter in question and the witness read it into the record. We have no doubt that appellee served appellants with written notice of his rejection of their claim by the hearing date. Unless the receivership court orders a different manner of notice, service of written notice by first class mail satisfies the statutory notice requirement of section 3(h). Proof of receipt of that notice is not required. See Khalaf v. Odiorne, 767 S.W.2d 856, 858 (Tex.App.1989, writ denied). Further, notice written from the receiver’s attorney satisfies the statute. Great American Investment Co. v. McFarling, 416 S.W.2d 479, 481 (Tex.Civ.App.1967, writ ref’d n.r.e.).

After appellee served written notice of rejection of appellants’ claim, appellants had three months to file an action on their rejected claim in the court where the delinquency proceeding was pending, but the cause was not filed there until October 30, 1986. Appellants complain generally that the trial court erred by granting appellee’s motion for summary judgment because their filing in Gray County excused their failure to file timely in the proper court.

Appellee does not dispute that appellants’ petition was timely filed. He argues only that the petition was not timely filed in a court possessing jurisdiction.

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792 S.W.2d 206, 1990 Tex. App. LEXIS 1412, 1990 WL 79083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitson-v-harris-texapp-1990.