Opinion ID: 2382235
Heading Depth: 1
Heading Rank: 5

Heading: Remand for consideration of new evidence

Text: At trial, State Farm interrupted the presentation of its evidence with a motion based on newly discovered evidence. Outside the presence of the jury, State Farm informed the court that additional plumbing tests had just been completed at the Nicolaus' house, resulting in the discovery of another large leak. State Farm requested that the trial court either stay the proceedings to allow additional testing or declare a mistrial. The trial court did not grant the motion. Instead, the court proceeded with the trial after receiving assurances from the Nicolaus' counsel that she would instruct their witnesses not to mention the new testing, and that she would not use the exclusion of the new evidence as a basis for appeal. After the trial court rendered its judgment, State Farm moved for a new trial on the basis of the new evidence. The trial court declined to rule on this issue on the basis of Rule 324(c) of the Texas Rules of Civil Procedure, which allows postponement of an evidentiary hearing until after remand from an appellate court. [3] State Farm now argues that the court of appeals erred in failing to remand this case for consideration of the motion for new trial based on the new evidence. We disagree, because State Farm has not shown any likelihood that the new evidence, if introduced at trial, would have resulted in a different verdict on any of the Nicolaus' claims. On the issue of contractual liability, the evidence tends to provide additional support for the jury's finding that State Farm breached the insurance contract. The Nicolaus' policy undisputedly provides coverage for damage caused by plumbing leaks, so the existence of an additional leak only strengthens the Nicolaus' claim for coverage. Likewise, on the issue of bad faith, the evidence tends to lend additional support to the jury's determination that State Farm breached its duty of good faith and fair dealing. At least two of the Nicolaus' witnesses testified that State Farm should have conducted further testing, such as taking soil samples, before concluding that the foundation damage was not caused by plumbing leaks. The Nicolaus' witnesses also criticized State Farm's conclusion, based on the Haag engineers' second report, that the moisture levels below the house should not be considered abnormally high. The new evidence supports the Nicolaus' position in both respects: it suggests that additional testing might well have established that the foundation damage was a covered loss and that the moisture levels were abnormally high. We hold, therefore, that any error in the trial court's action probably did not result in the rendition of an improper judgment, and thus is not reversible. See TEX.R.APP. P. 81(b)(1).