 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Huffhines v. State Farm Lloyds6/2/2005
In this appeal, we must resolve duty-to-defend issues regarding a Homeowners' Policy and a Personal Liability Umbrella Policy. Specifically, we are asked to determine whether appellees, State Farm Lloyds and State Farm Fire and Casualty Company ("State Farm"), had a duty to defend appellants, Jimmie W. Huffhines and Judith Ann Huffhines, against an original third-party petition filed in an underlying lawsuit when, in that original petition, the plaintiffs alleged appellants knowingly failed to disclose defects in a townhouse they sold to the plaintiffs. Because we conclude State Farm had no duty to defend appellants against this original third party petition, we affirm the trial court's judgment.
i. Factual and Procedural Background
Appellants sold their townhouse to George and Sharon Heaton in March 1998. Up to the time of sale, State Farm insured the townhouse under a Homeowners Policy. State Farm also insured appellants' subsequent residence and insured appellants under an Umbrella Policy.
The owner of the townhouse adjoining the Heatons', Mary L. Piper, initiated the underlying lawsuit against the Heatons alleging that various defects in the Heatons' property caused water to encroach on and damage her residence. As part of her factual allegations, Piper asserted the Heatons "failed to properly repair and maintain the common wall, patio, drainage system, and adjoining land in general in such a fashion so as to prevent water from intruding into [Piper's] townhome." In a claim of negligence, Piper alleged the Heatons breached their duty to Piper to maintain and repair their property in a reasonably prudent manner in order to avoid water intruding onto Piper's adjacent premises.
The Heatons then sued appellants. In their Original Third Party Petition, the Heatons alleged the following facts:
George Heaton purchased the Property from the Huffhines in March of 1998. In the course of this litigation, the Heatons received a copy of a letter and an engineering report sent to the Huffhines before they sold the Property to the Heatons, detailing various alleged defects of the Property and/or the common wall with Mrs. Piper related to water encroachment from the Property to Mrs. Piper's residence. In connection with the purchase of the Property, the Huffhines made certain disclosures to the Heatons regarding the Property in a document entitled Seller's Disclosure of Property Condition. In this Disclosure, the Huffhines assured the Heatons that, they were unaware of anything on the Property in need of repair, water penetration (other than a roof leak), improper drainage, or defects of the interior walls, exterior walls, roof, walls, fences, or plumbing. In summary, the Huffhines were on notice of the alleged problems made the basis of this suit, and failed to disclose same to the Heatons.
The Heatons' petition alleged common law fraud, statutory fraud, violation of the Deceptive Trade Practices Act (DTPA), and negligence, and sought contribution, damages, and attorney's fees. In the negligence paragraph, the Heatons pleaded, "In the alternative, Third-Party Defendants' misconduct as described above, constituted negligence which was the proximate cause of the Heatons' damages, for which they sue herein."
Appellants, in turn, sued State Farm, seeking a declaratory judgment that State Farm owed them a duty to defend in the underlying suit and to pay any adverse judgment rendered against them. The Heatons subsequently amended their petition, modifying the factual allegation set forth above to read:
George Heaton purchased the Property from the Huffhines in March of 1998. Plaintiff is alleging that water
Page 1 2 3 4 5 6 7 8 Texas Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|