Court Opinion

ID: 9771967
Source: CourtListenerOpinion
Date Created: 2023-08-29 17:03:39.739424+00
Date Added: 2024-06-11T07:31:40.627638
License: Public Domain

STEPHENSON, Justice
(dissenting).
I respectfully dissent to the portion of the opinion which denies a recovery of the penalty and attorney’s fees, as I have concluded the demand made by plaintiff is sufficient under Article 3.62 of the Insurance Code. There is no case cited to us or that I have found that passes directly upon the point before us. The question is: Can a petition serve as a demand in a case in which the petition is amended more than 30 days after the original is filed, and the demand by plaintiff and denial of liability by defendant is then alleged in the amended petition? No cases cited in the majority opinion on this point holds this procedure to be inadequate, including the Wann and Sturdevant Cases, supra.
There is nothing in the statute itself to indicate that a particular form must be used in order to make a demand. This statute does not state that a demand cannot be made in the form of an original petition. It is obvious that the purpose of this penal provision is to give a defendant an opportunity to study the plaintiff’s demand for 30 days, and determine whether or not it should pay such demand or deny liability and risk the loss of a penalty and attorney’s fees. It has been held that an oral demand was sufficient. In Scott v. National Bankers Life Ins. Co., 253 S.W.2d 485 (San Antonio Tex.Civ.App., 1952, error ref. n. r. e.), plaintiff went in person to defendant’s office and told the general agent his wife had been killed and he wanted to make a claim under the policy. The Scott Case cites Pan-American Life Ins. Co. v. Terrell, 29 F.2d 460 (5th Cir., 1928).
*714The Supreme Court of Texas has held that a proof of loss may be a sufficient demand under the statute. National Life & Accident Ins. Co. v. Dove, 141 Tex. 464, 174 S.W.2d 245 (1943). The Dove Case cited Great Southern Life Ins. Co. v. Johnson, 25 S.W.2d 1093 (Tex.Comm.App., 1930, holdings approved).
It has been consistently held that a claimant may file his petition, make a claim, and then file an amended petition and thereby satisfy Article 3.62. Southern Union Life Ins. Co. v. White, 188 S.W. 266, 268 (Austin Tex.Civ.App., 1916, error ref.).
The Supreme Court of Texas has held in Great American Reserve Insurance Co. v. Britton, 406 S.W.2d 901, 907 (Tex.Sup., 1966), that where the insurer filed suit to cancel the policy before suit on the policy is filed, that the right of the insurer to require a demand as a prerequisite to liability for attorney’s fees is waived. Then this statement is made:
“The purpose of the demand provision is to give the insurer a reasonable opportunity to investigate the claim and pay the proceeds before suit is filed.”
The filing of the original petition in this case gave the defendant in the present suit all of the information in specific detail that could have been set forth in a letter written by plaintiff’s attorney. The defendant in this case had 30 days to conduct further investigation, if desired to do so, and then admit liability before it could become liable for penalty and attorney’s fees. As it was said in Metropolitan Life Ins. Co. v. Ray, 105 S.W.2d 377 (Texarkana Tex.Civ.App., 1937, no writ), in a case in which suit was filed first, then demand given, that the insurance company could have avoided liability for penalty and attorney’s fees by paying or tendering payment of the demand. The defendant in this case filed its answer and amended answer denying liability in both instances. I would affirm the judgment of the trial court for the full amount of the judgment.