Glenda v. Metro. LIFE Ins. Co.

• Decision Date: 31 August 2010
• Docket Number: No. 2-09-248-CV.,2-09-248-CV.
• Citation: 324 S.W.3d 660
• Parties: Glenda and Larry RICE, Appellants, v. METROPOLITAN LIFE INSURANCE COMPANY, Appellee.
• Court: Texas Court of Appeals

324 S.W.3d 660

Glenda and Larry RICE, Appellants,

v.METROPOLITAN LIFE INSURANCE COMPANY, Appellee.

No. 2-09-248-CV.

Court of Appeals of Texas,Fort Worth.

Aug. 31, 2010.

COPYRIGHT MATERIAL OMITTED.

COPYRIGHT MATERIAL OMITTED.

Russell S. Rice, Arlington, TX, for Appellants.

Linda G. Moore, K & L Gates LLP, Dallas, TX, for Appellee.

PANEL: LIVINGSTON, C.J.; DAUPHINOT and GARDNER, JJ.

OPINION

TERRIE LIVINGSTON, Chief Justice.

In this life insurance dispute, appellants Glenda and Larry Rice raise ten points to appeal the trial court's order granting the traditional and no-evidence summary judgment motion of appellee Metropolitan Life Insurance Company (MetLife). We affirm in part and reverse and remand in part.

Background

Underlying facts

Glenda purchased group universal life (GUL) insurance for herself and a life insurance rider for her husband Larry, as her dependant, from MetLife through a plan offered by her employer, Avon Products, Inc. Larry's rider provided $50,000 in coverage. Glenda retired from Avon in March 2003.

MetLife sent a letter dated May 10, 2003 that was addressed to Glenda and described her insurance options upon retirement. The letter contained information in its upper right corner, under the title of “Coverage Information as of 5/10/2003,” about the amount of Glenda's own coverage and of Larry's coverage (described specifically in the letter at $50,000). It then stated in part,

You've worked for many years to ensure a solid financial future. Now it's time to relax and let us keep a promise that we made to you when you enrolled for Group Universal Life insurance. You trusted MetLife to provide a flexible life insurance benefit that would meet a lifetime of protection needs. Now, at this very important stage of your life, we'd like to continue to offer you a menu of coverage options. Most likely, your coverage needs have changed since you first enrolled for GUL. The enclosed brochure and options sheet explains the options now available to you.

Please review these options carefully. Please note that your current coverage will remain effective while you assess your choices.... To choose an option, simply complete the attached election form, sign where indicated, and return to MetLife in the envelope provided....

We look forward to continuing to serve your needs and help you keep your promises. Again, congratulations and our best wishes during your retirement!

The election form explained Glenda's coverage options: (1) “CONTINUE MY GUL COVERAGE,” (2) “ELECT A PAID-UP BENEFIT,” (3) “ELECT A METLIFE ANNUITY,” or (4) “SURRENDER YOUR COVERAGE & RECEIVE YOUR CASH FUND BALANCE.” Glenda initially sent MetLife a fax in which she chose the fourth option, but later on the same day that she sent the first fax, after speaking with a MetLife employee named Summer, Glenda sent another fax stating that she wanted to continue her coverage under the first option. The second fax that Glenda sent stated in part, “I just discussed my decision to retain my coverage with Summer, your customer service associate. She has assured me my coverage will neither lapse nor be cancelled.”

The certificate of insurance for Glenda's group life insurance plan states that term life insurance for dependants ends on the date of the employee's retirement. ¹ However, for about two and a half years after Glenda's retirement, MetLife continued to bill and accept quarterly premium payments for both Glenda's coverage and Larry's rider coverage. Glenda received a “Group Universal Life Report” for the period of January to December 2005 that mentioned Larry's $50,000 in coverage. ²

In July 2005, MetLife discovered that it had billed the Rices for Larry's coverage since Glenda's retirement in 2003, so in the latter part of 2005, MetLife stopped billing the Rices for that coverage without notice to Glenda. When Glenda received the bill for the final quarter of 2005, she saw for the first time that MetLife had stopped billing for Larry's coverage. When she called MetLife in December 2005, MetLife's employee, Angelica Ridge, explained to her that MetLife did not cover term life insurance for dependants under the Avon group policy upon an employee's retirement and that Larry's coverage had been canceled “effective July 2005.” ³ Glenda told Angelica that no one notified her of Larry's coverage cancellation. Despite this, according to Glenda, Angelica told her that the premiums that Glenda had paid for Larry's coverage would not be refunded and that Larry's coverage was in place through July 2005.

Procedural history

The Rices filed claims against MetLife for bad faith, breach of contract, violation of the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA), ⁴ violation of chapter 541 of the insurance code, ⁵ money had and received (based on the nonreturn of the Rices' premium payments for Larry's coverage), promissory estoppel, breach of fiduciary duty, and fraud by nondisclosure. MetLife filed, in one document, a traditional and no-evidence motion for summary judgment on all of the Rices' claims. The court granted the motion in its entirety without specifying reasons for doing so. The Rices filed their notice of this appeal.

The Trial Court's Order Granting MetLife's Summary Judgment Motion

In their first nine points, the Rices argue that the trial court erred by granting MetLife's traditional and no-evidence summary judgment motion against their various claims.

Standards of review Traditional summary judgment motions

A defendant who conclusively negates at least one essential element of a cause of action is entitled to summary judgment on that claim. IHS Cedars Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 143 S.W.3d 794, 798 (Tex.2004). Once the defendant produces sufficient evidence to establish the right to summary judgment, the burden shifts to the plaintiff to come forward with competent controverting evidence that raises a fact issue. Van v. Pena, 990 S.W.2d 751, 753 (Tex.1999).

We review a summary judgment de novo. Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009). We consider the evidence presented in the light most favorable to the nonmovant, crediting evidence favorable to the nonmovant if reasonable factfinders could and disregarding evidence contrary to the nonmovant unless reasonable factfinders could not. Id. We indulge every reasonable inference and resolve any doubts in the nonmovant's favor. 20801, Inc. v. Parker, 249 S.W.3d 392, 399 (Tex.2008). We must consider whether reasonable and fair-minded factfinders could differ in their conclusions in light of all of the evidence presented. See Wal-Mart Stores, Inc. v. Spates, 186 S.W.3d 566, 568 (Tex.2006); City of Keller v. Wilson, 168 S.W.3d 802, 822-24 (Tex.2005).

No-evidence summary judgment motions

After an adequate time for discovery, the party without the burden of proof may, without presenting evidence, move for summary judgment on the ground that there is no evidence to support an essential element of the nonmovant's claim or defense. Tex.R. Civ. P. 166a(i). The motion must specifically state the elements for which there is no evidence. Id.; Timpte Indus., Inc. v. Gish, 286 S.W.3d 306, 310 (Tex.2009). The trial court must grant the motion unless the nonmovant produces summary judgment evidence that raises a genuine issue of material fact. See Tex.R. Civ. P. 166a(i); Hamilton v. Wilson, 249 S.W.3d 425, 426 (Tex.2008).

Like our review of traditional summary judgment motions, when reviewing a no-evidence summary judgment, we examine the entire record in the light most favorable to the nonmovant, indulging every reasonable inference and resolving any doubts against the motion. Sudan v. Sudan, 199 S.W.3d 291, 292 (Tex.2006). And also like traditional motions, we review a no-evidence summary judgment for evidence that would enable reasonable and fair-minded factfinders to differ in their conclusions. Hamilton, 249 S.W.3d at 426 (citing City of Keller, 168 S.W.3d at 822). We credit evidence favorable to the nonmovant if reasonable factfinders could, and we disregard evidence contrary to the nonmovant unless reasonable factfinders could not. Timpte Indus., Inc., 286 S.W.3d at 310 (quoting Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 582 (Tex.2006)). If the nonmovant brings forward more than a scintilla of probative evidence that raises a genuine issue of material fact, then a no-evidence summary judgment is not proper. Smith v. O'Donnell, 288 S.W.3d 417, 424 (Tex.2009).

Breach of contract

[1] [2] In their third point, the Rices contend that the trial court erred by granting summary judgment against their breach of contract claim. Insurance policies are contracts. Barnett v. Aetna Life Ins. Co., 723 S.W.2d 663, 665 (Tex.1987); see Markel Ins. Co. v. Muzyka, 293 S.W.3d 380, 385-86 (Tex.App.-Fort Worth 2009, no pet.) (describing various principles of contract interpretation that apply to insurance policies). “The elements of a breach of contract claim are (1) the existence of a valid contract, (2) performance or tendered performance by the plaintiff, (3) breach of the contract by the defendant, and (4) resulting damages to the plaintiff.” Fieldtech Avionics & Instruments, Inc. v. Component Control.Com, Inc., 262 S.W.3d 813, 825 (Tex.App.-Fort Worth 2008, no pet.) (citing Harris v. Am. Prot. Ins. Co., 158 S.W.3d 614, 622-23 (Tex.App.-Fort Worth 2005, no pet.)).

MetLife has not expressly argued that the certificate of insurance does not qualify as a valid contract or that the Rices did not perform under that contract. Rather, MetLife moved for summary judgment on the grounds that (1) there was no evidence that it breached the contract because its termination of Larry's coverage upon Glenda's retirement was mandated by the terms of the certificate of insurance and (2) the Rices have not suffered damages.

The Rices contend that MetLife waived its termination of Larry's coverage under the certificate of...