TIG Insurance Co. v. North American Van Lines8/26/2005
nt that the underlying insurance had to be exhausted by the payment of actual damages and not "claim expenses" before its coverage was triggered. And because the actual damages in the Emmons judgment were under $10,000,000, the combined limits of the USF&G and Royal policies, TIG argued its coverage was not triggered. TIG also argued its coverage was not triggered because all "claim expenses" should have been paid by NAVL and none should have been apportioned to the Royal policy. Had this occurred, the Royal policy limits would have covered the remainder of the actual damages and the TIG coverage would not have been triggered. NAVL filed a counterclaim against TIG alleging breach of contract, contending the underlying policy limits had been exhausted, that these limits were insufficient to satisfy the Emmons judgment, and that TIG owed the remainder of the judgment.
TIG and NAVL both filed motions for summary judgment on their claims. After hearing argument on the competing motions, the trial court issued a letter ruling, holding, in part: (1) the USF&G policy provides $5,000,000 primary insurance plus indemnification of a percentage share of NAVL's "claim expenses," which the court calculated as 44.1%; and (2) NAVL may apportion its share of the "claim expenses" (55.9%) to the Royal policy provided the apportionment is consistent with the terms of the Royal policy. The trial court then allocated the damages and "claim expenses" as follows:
TotalUSF&GRoyalTIG
Actual Damages$8,947,274$5,000,000$1,519,099$2,428,175
Prejudgment Interest$2,488,077$1,097,242$1,390,8350
Postjudgment Interest$3,738,938$1,648,872$2,090.0660
TIG objected to the trial court's calculation of the ratio used to apportion "claim expenses." After a supplemental hearing and briefing on whether defense costs should have been included in "claim expenses," the trial court issued a second letter, ruling that defense costs should not be applied against the limits of the Royal policy. Based on its rulings, the trial court denied TIG's motion for summary judgment, granted in part NAVL's motion for summary judgment, and awarded final judgment for NAVL in the amount of $2,428,175 against TIG, plus interest and attorney's fees.
Analysis
A. Standard of Review and Applicable Law
When both parties move for summary judgment, each bears the burden of establishing it is entitled to judgment as a matter of law. City of Garland v. Dallas Morning News, 22 S.W.3d 351, 356 (Tex. 2000). If the trial court grants one motion and denies the other, the non-prevailing party may appeal the granting of the prevailing party's motion as well as the denial of its own motion. Holmes v. Morales, 924 S.W.2d 920, 922 (Tex. 1996). We review the summary judgment evidence presented by both parties and determine all questions presented. Dallas Morning News, 22 S.W.3d at 356. We may affirm the trial court's summary judgment or reverse and render the judgment the trial court should have rendered. Morales, 924 S.W.2d at 922; Jones v. Strauss, 745 S.W.2d 898, 900 (Tex. 1988).
When interpreting the terms of an insurance contract, we follow the general rules of contract construction. State Farm Life Ins. Co. v. Beaston, 907 S.W.2d 430, 433 (Tex. 1995). Our primary concern is to ascertain the true intent of the parties as expressed in the written contract. Nat'l Union Fire Ins. Co. v. CBI Indus., Inc., 907 S.W.2d 517, 520 (Tex. 1995); Vincent v. Bank of Am., N.A., 109 S.W.3d 856, 866 (Tex. App.-Dallas 2003, pet. denied). If the contract can be given an exact or certain legal interpretation, it is not ambiguous, and we must interpret the insurance pol
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