Opinion ID: 1780829
Heading Depth: 1
Heading Rank: 3

Heading: Treble Damages under the Insurance Code and the DTPA

Text: The Aiellos also argue that they should recover treble damages under article 21.21 of the Insurance Code and section 17.46 of the Deceptive Trade Practices Act. When the Aiellos filed their suit, section 16(a) of article 21.21 prohibited an insurer from engaging in any practice defined by section 17.46 of the DTPA. Act of May 21, 1973, 63rd Leg., R.S., ch. 143, § 2(c), 1973 Tex. Gen. Laws 338, amended by Act of April 4, 1985, 69th Leg., R.S., ch. 22, § 3, 1985 Tex. Gen. Laws 395, amended by Act of June 8, 1995, 74th Leg., R.S., ch. 414, § 13, eff. Sept. 1, 1995, 1995 Tex. Gen. Laws 3000. The list of false, misleading, or deceptive acts or practices contained in section 17.46 is not exclusive. Spradling v. Williams, 566 S.W.2d 561, 564 (Tex.1978). But, [a]n act or practice which is not among those listed in subsection 17.46(b) requires a jury issue to determine as a fact whether it was deceptive. Id. We interpreted the same version of article 21.21, section 16 at issue here in Vail v. Texas Farm Bureau Mutual Insurance Company, 754 S.W.2d 129 (Tex.1988). In Vail, we relied on Spradling to hold that a jury finding that an insurance company failed to exercise good faith in handling an insurance claim would sustain a claim that the insurer engaged in an unlisted deceptive trade practice under section 17.46 of the DTPA. [2] Id. at 135-36. As we have already determined that the Aiellos' bad faith claim fails, their claim for treble damages predicated on bad faith pursuant to article 21.21 of the Insurance Code and section 17.46 of the DTPA must likewise fail.