United Services Automobile Association v. Joseph Hayes, Jr and Joanne Hayes

                                                                               ACCEPTED
                                                                           01-14-00133-CV
                                                                FIRST COURT OF APPEALS
                                                                        HOUSTON, TEXAS
                                                                       6/1/2015 4:09:19 PM
                                                                     CHRISTOPHER PRINE
                                                                                    CLERK

                     No. 01-14-00133-CV
___________________________________________________________
                                                      FILED IN
                                               1st COURT OF APPEALS
                IN THE COURT OF APPEALS            HOUSTON, TEXAS
   FOR THE FIRST COURT OF APPEALS DISTRICT OF      TEXAS
                                               6/1/2015 4:09:19 PM
                     HOUSTON, TEXAS            CHRISTOPHER A. PRINE
                                                       Clerk
___________________________________________________________

      UNITED SERVICES AUTOMOBILE ASSOCIATION,
                 Appellant/Cross-Appellee
                            v.
         JOSEPH HAYES, JR. AND JOANNE HAYES,
                  Appellees/Cross-Appellants
___________________________________________________________
                On Appeal from Cause No. 2009-63319
      In the 165th Judicial District Court of Harris County, Texas
___________________________________________________________

              APPELLANT UNITED SERVICES
       AUTOMOBILE ASSOCIATION’S SUPPLEMENT
                TO ITS APPELLANT’S BRIEF
___________________________________________________________


                      Levon G. Hovnatanian
                     State Bar No. 10059825
                   hovnatanian@mdjwlaw.com
                      Christopher W. Martin
                     State Bar No. 13057620
                      martin@mdjwlaw.com
                           Kevin G. Cain
                     State Bar No. 24012371
                        cain@mdjwlaw.com
           MARTIN, DISIERE, JEFFERSON & WISDOM, L.L.P.
                       808 Travis, 20th Floor
                      Houston, Texas 77002
                   (713) 632-1700 – Telephone
                   (713) 222-0101 – Facsimile
                                        TABLE OF CONTENTS

                                                                                                             PAGE

TABLE OF CONTENTS ...........................................................................................i

TABLE OF AUTHORITIES ................................................................................... ii
ARGUMENT ............................................................................................................1
I.       USAA CHALLENGES THE JURY’S FINDING IN RESPONSE TO
         QUESTION 1A, IN REGARD TO NOT ONLY THE ROOF, BUT
         ALSO THE GARAGE DOOR AND “OTHER EXTERIOR
         DAMAGE.” ....................................................................................................1

II.      THE JURY’S ANSWERS TO QUESTION 4 CANNOT SUPPORT
         AN AWARD OF DAMAGES. ......................................................................1
III.     THE HAYES ARE NOT ENTITLED TO AN AWARD
         PREDICATED ON THE JURY’S FINDINGS IN RESPONSE TO
         QUESTION 5. ................................................................................................2

CONCLUSION AND PRAYER FOR RELIEF .......................................................2

CERTIFICATE OF COMPLIANCE ........................................................................3

CERTIFICATE OF SERVICE .................................................................................4




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                                   TABLE OF AUTHORITIES

                                                                                                       PAGE
Cases
Ashford Partners, Ltd. v. ECO Res., Inc.,
  401 S.W.3d 35 (Tex. 2012) .................................................................................. 1

Grafa v. Morgan,
  696 S.W.2d 492 (Tex. App.—El Paso 1985, writ dism’d) .................................. 2
Hanson v. Republic Ins. Co.,
 5 S.W.3d 324 (Tex. App.—Houston [1st Dist.] 1999, pet. denied)................. 1, 2

Progressive County Mut. Ins. Co. v. Boyd,
  177 S.W.3d 919 (Tex. 2005) ................................................................................ 2

Smithdale Court, Inc. v. Kelly,
  1993 WL 282922 (Tex. App.—Houston [1st Dist.] 1993, no writ)..................... 2




                                                       ii
I.    USAA CHALLENGES THE JURY’S FINDING IN QUESTION 1A
      REGARDING THE GARAGE DOOR AND “OTHER EXTERIOR
      DAMAGE.”
      There is no evidence that USAA failed to compensate the Hayes for their

garage door and other exterior damage. Berke testified that USAA’s payments

included the cost to replace the garage door and to repair the gas light. RR 5:146-

51, 153. Wilsford testified that a soffit on the Hayes’ house had been repaired but

that another one on their house had not. RR 6:140-41. However, testimony that

something had not been repaired is not evidence that USAA did not pay the Hayes

so the repair could be made.

      Because there is no evidence of a breach of contract regarding the roof, and

there was no evidence that USAA failed to compensate the Hayes for their garage

door and other exterior damage, the Hayes were not entitled to an award for breach

of contract or attorney’s fees based on breach of contract. See Ashford Partners,

Ltd. v. ECO Res., Inc., 401 S.W.3d 35, 40-41 (Tex. 2012).

II.   THE JURY’S ANSWERS TO QUESTION 4 CANNOT SUPPORT A
      DAMAGES AWARD.
      Question 4 inquired about unfair or deceptive acts or practices. CR 503. A

claim of unfair or deceptive acts or practices is an extra-contractual claim. Hanson

v. Republic Ins. Co., 5 S.W.3d 324, 327 (Tex. App.—Houston [1st Dist.] 1999, pet.

denied). Because USAA did not breach the policy (see RR 5:146-51, 153; RR

6:140-41), extra-contractual damages and attorney’s fees based on extra-


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contractual damages are not recoverable. See Progressive County Mut. Ins. Co. v.

Boyd, 177 S.W.3d 919, 922 (Tex. 2005).

III.   THE HAYES ARE NOT ENTITLED TO AN AWARD PREDICATED
       ON THE JURY’S FINDINGS IN QUESTION 5.
       Regarding the $20,000 award in Question 5 for exterior damage (CR 504),

the answer to Question 1B—that USAA did not fail to comply with the policy

regarding interior damage (CR 500)—cannot support the award. See Smithdale

Court, Inc. v. Kelly, 1993 WL 282922, at *2 (Tex. App.—Houston [1st Dist.]

1993, no writ). The jury’s answer to Question 1A (that USAA failed to comply

with the policy regarding exterior damage) (CR 500) also cannot support it,

because, as shown above, there is no evidence that USAA breached the contract

regarding exterior damage. See RR 5:146-51, 153; RR 6:140-41. Without liability

for breach of contract, there can be no breach of contract damages. See Grafa v.

Morgan, 696 S.W.2d 492, 493 (Tex. App.—El Paso 1985, writ dism’d).

       The jury’s answers to Question 4 cannot support the $20,000 award.

Question 4 inquired about unfair or deceptive acts or practices (CR 503), and a

claim of unfair or deceptive acts or practices is an extra-contractual claim.

Hanson, 5 S.W.3d at 327. Because USAA did not breach the policy (see RR

5:146-51, 153; RR 6:140-41), extra-contractual damages and attorney’s fees based

on extra-contractual damages are not recoverable. See Boyd, 177 S.W.3d at 922.

       USAA respectfully requests the relief requested in its appellant’s brief.


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                            Respectfully submitted,

                            MARTIN, DISIERE, JEFFERSON & WISDOM, L.L.P.


                            By:       /s/ Kevin G. Cain
                                Levon G. Hovnatanian
                                State Bar No. 10059825
                                hovnatanian@mdjwlaw.com
                                Christopher W. Martin
                                State Bar No. 13057620
                                martin@mdjwlaw.com
                                Kevin G. Cain
                                State Bar No. 24012371
                                cain@mdjwlaw.com
                            808 Travis, 20th Floor
                            Houston, Texas 77002
                            (713) 632-1700 – Telephone
                            (713) 222-0101 – Facsimile

                            ATTORNEYS FOR APPELLANT
                            UNITED SERVICES AUTOMOBILE
                            ASSOCIATION


                 CERTIFICATE OF COMPLIANCE
    This is to certify that this computer-generated APPELLANT UNITED
SERVICES AUTOMOBILE ASSOCIATION’S SUPPLEMENT TO ITS
APPELLANT’S BRIEF contains 494 words.


                                  /s/ Kevin G. Cain
                                  Kevin G. Cain
                                  Dated: June 1, 2015




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                         CERTIFICATE OF SERVICE
      This is to certify that a true and correct copy of the above APPELLANT
UNITED SERVICES AUTOMOBILE ASSOCIATION’S SUPPLEMENT TO ITS
APPELLANT’S BRIEF has been served on the following individuals on this, the
1st day of June, 2015, via electronic filing, with a courtesy copy sent via e-mail to
Jennifer Bruch Hogan:

Jennifer Bruch Hogan
jhogan@hoganfirm.com
Richard P. Hogan, Jr.
rhogan@hoganfirm.com
HOGAN & HOGAN
909 Fannin, Suite 2700
Houston, Texas 77010

René M. Sigman
rmsigman@mostynlaw.com
THE MOSTYN LAW FIRM
3810 W. Alabama Street
Houston, Texas 77027

Randal Cashiola
rcashiola@cashiolabeanlaw.com
CASHIOLA & BEAN
2090 Broadway Street, Suite A
Beaumont, Texas 77701

                                            /s/ Kevin G. Cain
                                       Kevin G. Cain




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