CORPUS CHRISTI COURT OF APPEALS AFFIRMS SUMMARY JUDGMENT FOR ALLSTATE ON BAD FAITH AND “LACK OF COOPERATION” CAUSES OF ACTION

Last Thursday, the Corpus Christi Court of Appeals affirmed a trial court’s granting of a no-evidence motion for summary judgment in favor of an insurer and rejected claims of lack of cooperation and bad faith causes of action asserted by the insured.  In Hennen v. Allstate Insurance Company, No. 13-12-00645-CV (Tex. App. – Corpus Christi, September 5, 2013), the Hennen’s settled with Direct TV for $40,000 following a fire at their residence.  Afterwards, they filed suit against Allstate alleging that they settled for 1/5 the “true” value of their claim because Allstate refused to allow them access to Allstate’s expert.  The trial court granted Allstate’s no-evidence summary judgment motion and this appeal followed.

On appeal, the court assumed that Texas law recognizes a cause of action for the alleged “lack of cooperation” in order to address the issues on appeal.  The court found no evidence to support the Hennen’s “conclusory and speculative” damages assessment.  Further, they found no evidence of damages proximately caused by Allstate’s alleged bad faith.  Accordingly, summary judgment in favor of Allstate was affirmed.  (Click here for Opinion).