A jury in Texas has awarded more than $500,000 to an insured who asserted that his insurer's app-based investigation of his claim that his pickup truck was damaged was inadequate.
Facts and Allegations
Jaime Dominguez-Siller asserted that his pickup truck suffered storm-related flood damage while parked at his apartment complex. He filed a property damage claim with his insurer, American Access Casualty Company.
Mr. Dominguez-Siller said that American Access initially investigated the claim remotely through the company's smartphone application that Mr. Dominguez used to upload photographs of the damage. The insurer concluded that there was damage to only the floorboard and seat belt, and that repairs would cost about $324.
A little more than a month after the accident, the insurer conducted an in-person investigation and concluded that the damage was worse. It found that the engine had flooded, that the transmission had to be replaced, and that the total repair cost would be $2,651.49.
The insurer issued Mr. Dominguez-Siller a check for $1,651.49, based on its estimate less a $1,000 deductible.
Mr. Dominguez-Siller sued American Access. He alleged that the company had breached the insurance policy and violated Chapter 541 of the Texas Insurance Code by engaging in unfair or deceptive acts or practices.
Counsel for Mr. Dominguez-Siller contended that the insurer's app-based investigation was inadequate; that American Access did not investigate the claim within 30 days, as required by Texas insurance law; and that the payment of $1,651.49 was an underpayment by $5,000 to $6,000.
American Access denied violating the policy or the insurance law. It argued that all of its investigations and conclusions on the claim were reasonable and that the initial estimate of $324 was based on the photographs uploaded by Mr. Dominguez-Siller and his statement at the time that the truck was driving fine.
The company also contended that Mr. Dominguez-Siller's estimate of about $6,000 was based on new rather than used parts and on excessive labor rates.
The defense also argued that, in the case of a flooded vehicle, it was perfectly normal and common for an insurer to give an initial estimate and multiple subsequent, higher estimates, as more damage was reported.
Result
The jury found knowing breach of the insurance policy and unfair or deceptive acts or practices. It awarded Mr. Dominguez-Siller damages of $508,965.62. The jury also conditionally awarded him appellate attorneys' fees.
American Access plans to file a motion for judgment notwithstanding the verdict, arguing that Mr. Dominguez-Siller pleaded the case as an expedited action and was limited to a $100,000 recovery, and that he pleaded $75,000 as the maximum amount he was seeking and was limited to a $75,000 recovery.
The case is Dominguez-Siller v. American Access Casualty Co., No. 1101103 (Tex. County Ct. Harris Co. Sept. 16, 2019). Attorneys involved include: John Scott Black; Daly & Black; for Jaime Dominguez-Siller; David Bergen; Daly & Black; for Jaime Dominguez-Siller; Jason H.G. Truitt; Anderson & Truitt, PLLC; Houston, TX for American Access Casualty Co.
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This report is based on information that was provided by plaintiff's and defense counsel.
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Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].