Collier v. Allstate County Mut. Ins. Co.

• Decision Date: 07 June 2001
• Docket Number: No. 2-00-116-CV.,2-00-116-CV.
• Citation: 64 S.W.3d 54
• Parties: Amy Cook COLLIER and Ryan Collier, Appellants, v. ALLSTATE COUNTY MUTUAL INSURANCE COMPANY, Appellee.
• Court: Texas Court of Appeals

64 S.W.3d 54

Amy Cook COLLIER and Ryan Collier, Appellants, v. ALLSTATE COUNTY MUTUAL INSURANCE COMPANY, Appellee.

No. 2-00-116-CV.

Court of Appeals of Texas, Fort Worth.

June 7, 2001.

Law Office of Julie Kraatz, Julie Kraatz, Fort Worth, for Appellant.

Stacy & Conder, PLLC, Dennis D. Conder, Pamela J. Touchstone, Dallas, for Appellee.

PANEL B: LIVINGSTON, HOLMAN, and GARDNER, JJ.

OPINION

GARDNER, Justice.

I. Introduction

This is a declaratory judgment action. Appellee Allstate County Mutual Insurance Company sought a declaration that it owed no duty to defend or indemnify Appellants Amy Cook Collier ("Cook")¹ and Ryan Collier ("Collier") under a Texas Personal Automobile Policy for a suit brought against them by Amy Jeanine Dunn ("Dunn"). On appeal, appellants complain of a summary judgment granted in favor of Allstate.

II. Factual and Procedural Background

On December 29, 1996, Collier was driving an automobile owned by Cook. Cook, Mande Cook, and Fred Rowe were passengers in the automobile driven by Collier. Dunn was driving a vehicle in front of that driven by Collier. Dunn was involved in a collision with a third vehicle, the driver of which is not a party to this proceeding. Dunn sued Cook and Collier in the 141st District Court of Tarrant County, alleging "negligent" or "reckless" conduct of Cook and Collier proximately caused the collision with the third vehicle, resulting in injuries to Dunn.

Specifically, Dunn alleged Cook, Collier, and the other two passengers were following her in Cook's vehicle on Watauga Road in Tarrant County, Texas. While Dunn was stopped at a red light, Collier allegedly "got out of the vehicle ... he was driving and ran toward the Plaintiff's vehicle shouting to the Plaintiff.... Plaintiff proceeded through the first intersection and then stopped for another traffic light." Dunn further alleged "Defendants continued to follow the Plaintiff." Dunn alleged she proceeded to a second red light and stopped again, and that Collier again "got out of the vehicle he was driving, approached the Plaintiff's vehicle, shouted at the Plaintiff and this time, kicked at the door while attempting to open the Plaintiff's car door." Dunn, allegedly in fear of bodily harm, attempted to escape and, in doing so, proceeded through the red light into the intersection where a vehicle crossing the intersection collided with her, resulting in physical injury to her and damage to her property.

According to Dunn, Cook and the passengers "encouraged, urged, aided and abetted Ryan Collier to pursue [Dunn's] vehicle and to act in a reckless, violent manner toward [Dunn]." Dunn specifically alleged that Collier was "negligent" for (1) creating fear in Dunn by continually following her in Cook's vehicle; (2) creating fear in Dunn by exiting Cook's vehicle and screaming at her on more than one occasion during his continued use of Cook's vehicle; (3) creating fear and a perceived need for escape by approaching Dunn's vehicle at a stop light, shouting, and attempting to open her door; and (4) failing to exercise an ordinary and reasonable degree of care in the operation of Cook's vehicle on that particular occasion.

Cook possessed a standard Texas Personal Automobile Policy issued by Allstate. Upon being sued, Cook and Collier requested that Allstate provide a defense and indemnify them for any judgment in the suit brought against them by Dunn. Allstate denied coverage and asserted that it had no duty to defend or indemnify Cook or her permissive driver, Collier, in Dunn's suit pending in the 141st District Court. Allstate filed an action in the 48th District Court seeking a declaratory judgment that it had no duty to defend or indemnify either Cook or Collier under the policy for the allegations made by Dunn. Cook and Collier counterclaimed for a declaration that Allstate had a duty to defend them in Dunn's suit.²

Allstate filed a motion for summary judgment asserting that it owed no duty to defend or indemnify Cook or Collier as a matter of law, and Cook and Collier filed cross-motions for summary judgment seeking respective declaratory judgments in their favor on the issue of Allstate's duty to defend and indemnify. The trial court granted Appellee's motion for summary judgment and denied Cook's and Collier's cross-motions, effectively declaring that Allstate had no duty to defend or indemnify Cook or Collier in Dunn's suit against them. Cook and Collier appeal from the summary judgment in favor of Allstate and from the denial of their crossmotions for summary judgment.

III. Discussion

A. Standard of Review

We uphold a Rule 166a(c) summary judgment only if the summary judgment record establishes there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law on a ground set forth in the motion. Tex.R. Civ. P. 166a(c); e.g., Nixon v. Mr. Property Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex. 1985). In deciding whether the summary judgment record establishes the absence of a genuine issue of material fact, we view as true all evidence favorable to the nonmovant and indulge every reasonable inference, and resolve all doubts, in its favor. Id.

When both sides move for summary judgment and the trial court grants one motion and denies the other, we review both sides' summary judgment evidence and determine all questions presented. FM Props. Operating Co. v. City of Austin, 22 S.W.3d 868, 872 (Tex.2000) (citing Comm'rs Court of Titus County v. Agan, 940 S.W.2d 77, 81 (Tex.1997); Jones v. Strauss, 745 S.W.2d 898, 900 (Tex. 1988)). When reviewing cross-motions for summary judgment, we may render the judgment that the trial court should have rendered. Id. (citing Agan, 940 S.W.2d at 81; Members Mut. Ins. Co. v. Hermann Hosp., 664 S.W.2d 325, 328 (Tex.1984)).

The parties agree there is no genuine issue of material fact, and the sole question presented is of law as to whether Allstate has a contractual duty under its policy to defend and indemnify Cook and Collier for the claims asserted against them by Dunn. See, e.g., State Farm Gen. Ins. Co. v. White, 955 S.W.2d 474, 475 (Tex.App.-Austin 1997, no writ). Therefore, we review the summary judgment de novo to determine whether Allstate established its right to prevail as a matter of law. Wessinger v. Fire Ins. Exch., 949 S.W.2d 834, 836-37 (Tex.App.-Dallas 1997, no writ).

Allstate presented multiple grounds in its motion for summary judgment urging that it owed no obligation of defense or indemnity under Cook's auto policy. The judgment in favor of Allstate does not specify the grounds upon which it was granted. Therefore, if the summary judgment can be upheld on any ground presented in the motion, we must affirm. When a trial court's order granting summary judgment does not specify the grounds relied upon, we must affirm the summary judgment if any of the summary judgment grounds are meritorious. Star-Telegram, Inc. v. Doe, 915 S.W.2d 471, 473 (Tex.1995).

B. The Parties' Contentions

Allstate's first ground for summary judgment was that neither Cook nor Collier qualify as "covered persons" within the meaning of the Allstate policy because their alleged liability does not arise out of the "use" of Cook's automobile. Second, Allstate contended that, even if Cook or Collier qualify as "covered persons" within the meaning of the policy, the policy would not apply because the damages claimed do not arise from an "auto accident" so as to trigger the insuring agreement of the policy. Finally, Allstate contended that, even if the allegations in the case state a claim arising from an "auto accident" so as to trigger the insuring agreement of the policy, the intentional injury exclusion of the policy precludes any potential coverage afforded either Cook or Collier.

Cook and Collier argue that summary judgment in favor of Allstate was error and that they are entitled to judgment as a matter of law. First, they assert that they are "covered persons" entitled to a defense under the Allstate policy because the pleadings allege that Dunn's injuries arise out of "use" of Cook's vehicle. Second, they argue that, according to the allegations, their liability to Dunn, if any, would be for an "auto accident" as required for coverage because the alleged injuries to Dunn (a) involved the insured Cook vehicle, and (b) resulted from negligence rather than voluntary or intentional conduct of Cook or Collier. Finally, even assuming that their alleged acts can be construed as intentional, they contend the exclusion for intentionally caused injuries does not apply.

C. The Law Regarding Duty to Defend

It is well established that a liability insurer's duty to defend is determined by the factual allegations of the pleadings, considered in light of the policy provisions and without reference to the truth or falsity of the allegations. Nat'l Union Fire Ins. Co. v. Merchants Fast Motor Lines, Inc., 939 S.W.2d 139, 141 (Tex.1997); Heyden Newport Chem. Corp. v. Southern Gen. Ins. Co., 387 S.W.2d 22, 26 (Tex.1965) (holding duty to defend is determined without reference to truth or falsity of allegations); Reser v. State Farm Fire & Cas. Co., 981 S.W.2d 260, 263 (Tex.App.-San Antonio 1998, no pet.) (noting that duty to defend is unaffected by facts ascertained before suit, during trial, or by ultimate outcome of suit).

This test, generally known as the "complaint allegation rule," and also referred to as the "eight corners rule," limits review to the four corners of the insurance policy and the four corners of the plaintiff's petition in the underlying suit. Nat'l Union, 939 S.W.2d at 141; see St. Paul Surplus Lines Ins. Co. v. Geo Pipe Co., 25 S.W.3d 900, 903 (Tex.App.-Houston [1st Dist.] 2000, no pet.).³

When determining an insurer's duty to defend, we apply a liberal interpretation to the allegations of the petition in favor of the insured. Nat'l Union, 939 S.W.2d at 141. Any doubt as to whether allegations in a petition state a covered cause of...