Court Opinion

ID: 9777015
Source: CourtListenerOpinion
Date Created: 2023-08-29 19:51:52.79784+00
Date Added: 2024-06-11T09:14:14.580950
License: Public Domain

REYNOLDS, Chief Justice,
dissenting on motion for rehearing.
Although I agree that Vanguard Insurance Company’s motion for rehearing should be overruled, I disagree to the overruling of Republic Insurance Company’s motion for rehearing. I would grant Republic’s motion and affirm the trial court’s take-nothing summary judgment with respect to the Hennes-seys’ action against Republic.
The Hennesseys filed their action to validate their claim of a loss covered by a Texas Homeowers Policy of insurance issued to them by Vanguard. As pertinent to the status of the appeal at the time of rehearing, they had also lodged general accusations of misrepresentations made, and deceptive acts or practices committed, by Vanguard and *806Republic in representing “that their services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have,” and “that an agreement confers or involves rights, remedies or obligations which it does not have.” See Tex.Bus. & Com.Code Ann. §§ 17.46(b)(5) & (12) (Vernon Supp.1995).
Republic answered and, as it is material to the question of its entitlement to summary judgment, alleged under oath that it was not hable in the capacity in which it was sued, and was not a proper party to the action in that it did not issue the insurance policy. See Tex.R.Civ.P. 93(2). Afterwards, Republic moved for summary judgment, supported by affidavits, on the ground that it was not a proper party because it did not issue the insurance policy to the Hennesseys. An unchallenged and uncontradicted affidavit established that Vanguard has no ownership in Republic, and that Vanguard, albeit a wholly owned subsidiary of Republic, is a separate and distinct entity from Republic, does business in its own name and for its own purposes, and is not a sham corporation of Republic.
The Hennesseys responded that Republic was a proper party because they “are alleging a cause of action under the Texas Deceptive Trade Practice Act which provides remedies for misrepresentations on the part of business with regard to consumers like [them].” In explanation, the Hennesseys contended “that while the contract of insurance may have been between Vanguard Insurance and [them], the contract itself bears the name and logo of Republic Insurance.” Thus, the Hennesseys conclude, since Republic was “named on the policy that is the subject of this suit, it is a question of fact for the jury to determine if [it] made representations upon which [they] relied.”
In this connection, although the overlay page of the Texas Homeowners Policy is imprinted with the name “Republic Insurance Group of Companies,” and has the notation “republic insurance” in the lower right hand corner, there is boldly printed thereon the notification that “Coverage is provided by the company designated on the Declarations Page, a Capital Stock Company.” The printed Declarations Page, on which “Republic Insurance Group” is printed in the upper right hand corner, there is typed in the upper left hand corner, underneath the typed policy number, “VANGUARD INSURANCE COMPANY” in the same type used to complete the information concerning the insurance issued. Though it was not evidenced that any of the imprinted logos was the logo of Republic Insurance Company, it may be assumed the logotype was a symbol of Republic since it has not raised the issue.
Replying to the Hennesseys’ response, Republic answered that the Hennesseys did not allege, and there is no evidence, it was represented to them that the policy upon which their action is based was anything other than a Vanguard policy. Then, if, arguendo, the logo could be considered a representation, it is not, and the Hennesseys do not allege it is, a representation amounting to the only conceivable deceptive trade practice of “causing confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another.” See Tex.Bus. & Com. Code Ann. § 17.46(b)(3) (Vernon Supp.1995). Thus, there is no fact issue precluding its entitlement to summary judgment.
To be entitled to summary judgment, Republic was required to meet, and defeat, the Hennesseys’ action as pleaded, Torres v. Western Casualty and Surety Company, 457 S.W.2d 50, 52 (Tex.1970), on the issue(s) expressly presented to the trial court. City of Houston v. Clear Creek Basin Authority, 589 S.W.2d 671, 678 (Tex.1979). As the motion for summary judgment, response, and reply were postured before the trial court, the issue was whether the logo on the insurance policy constituted a representation by Republic upon which the Hennesseys relied for their action.
The summary judgment proof before the trial court showed that the insurance policy upon which the Hennesseys predicated their action was issued to them only by Vanguard which, albeit a wholly owned subsidiary of Republic, is a separate and distinct entity, does business in its own name and for its own purposes, and is not a sham corporation of Republic. With this type of proof, Republic showed that it was not liable for the *807obligations of Vanguard, Lucas v. Texas Industries, Inc., 696 S.W.2d 372, 374 (Tex.1984), unless, as the Hennesseys responded, the logo on the insurance policy constituted Republic’s representation of Vanguard’s services and the rights, remedies, and obligations conferred by Vanguard’s insurance policy. However, the fact that Vanguard and Republic shared the same logo is no evidence, and, as a result, it does not raise a fact issue, that Republic and Vanguard are to be treated as one insurer in the Hennesseys’ action against Vanguard. Id. at 376.
It follows that Republic established its properly pleaded affirmative defense by un-controverted summary judgment evidence and, therefore, was entitled to summary judgment. Roark v. Stallworth Oil and Gas, Inc., 813 S.W.2d 492, 494 (Tex.1991). Consequently, I would grant Republic’s motion for rehearing, affirm the trial court’s take-noth--ing summary judgment as to Republic, and reform our judgment accordingly.