Court Opinion

ID: 9830383
Source: CourtListenerOpinion
Date Created: 2023-09-01 20:09:45.154047+00
Date Added: 2024-06-11T07:43:20.697356
License: Public Domain

On Motion for Rehearing.
Upon a careful investigation of the record in this case, it appears that a suit was filed .by appellee contending for 101 days’ disability, for which she asked a recovery for $386.66. The period of disability was submitted to the jury, and the jury found that appellee was entitled only for a period of 71 days, with an indemnity of $286.66, which is a recovery of less than three-fourths of the amount demanded. The penalty allowed was $34.40, and the attorney’s fees allowed were $50.
Article 4746 provides that, where the insurance company fails to pay the amount of loss within 30 days after demand, it. shall be liable to pay the whole of the policy in addition to the amount of loss, 12 per cent, damages on the amount of such loss, together with reasonable attorney’s fees for the prosecution and collection of such loss. This statute has been construed to mean that, where the assured makes a demand for an amount larger than is due, and recovers a less amount by suit, the insurance company is not liable. Such has been the ruling of the Courts of Civil Appeals in two cases:
American National Insurance Co. v. Turner, 226 S. W. 487, in which it is held:
“Where the beneficiary under a life insurance policy makes demand on the insurer for th.e face amount of the policy, which is larger than the amount due, and recovers a less amount by suit, the insurance company is not liable to her for attorney’s fees under Rev. St. 1911, art. 4746.”
In the case of First Texas Prudential Insurance Co. v. Smallwood et al. (Tex. Civ. App.) 242 S. W. 498:
“Under Rev. St. 1911, art. 4746, requiring insurer who fails, on demand, to pay the loss, to pay a specified penalty and a reasonable attorney’s fee, an insurer was not liable for such penalty and attorney’s' fee where the amount demanded was in excess of that subsequently ascertained to be due.”
In view of the holding of the court, the items of $34.40 and attorney’s fees of $50 makes the total sum of $84.40 excessive. The judgment of the trial court, awarding to appellee a 12 per cent, penalty amounting to $34.40 and attorney’s fees of $50, will be reversed and rendered in favor of appellant upon that issue. In other respects the judgment of the court is affirmed. The judgment is further here rendered in accordance herewith in favor of appellee for the sum of $286.66.