Opinion

Federated Mutual Insurance v. Grapevine Excavation, Inc.

  • 241 F.3d 396
Court
Court of Appeals for the Fifth Circuit
Filed
Feb 2, 2001
Status
Published
On the bench
Jones, Wiener, Walter
Cited by
6 cases
Authority
More cited than 59.9%

The opinion

IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

_______________________________________

No. 98-10904

_______________________________________

FEDERATED MUTUAL INSURANCE COMPANY,

Plaintiff,

versus

GRAPEVINE EXCAVATION, INC., ET AL

Defendants,

GRAPEVINE EXCAVATION, INC.,

Defendant-Third Party Plaintiff-Appellant,

versus

MARYLAND LLOYDS, a Lloyds Insurance Company,

Third Party Defendant-Appellee.

_______________________

Appeal from the United States District Court

for the Northern District of Texas

_______________________

February 2, 2001

Before JONES and WIENER, Circuit Judges, and WALTER, District

Judge.*

PER CURIAM:

The district court rendered summary judgment in favor of Third

Party Defendant-Appellee Maryland Lloyds (“Maryland”). We held on

appeal that Maryland had breached its contract with Third Party

*

District Judge of the Western District of Louisiana, sitting

by designation.

Plaintiff-Appellant Grapevine Excavation Inc. (“GEI”), reversed the

district court’s grant of summary judgment and rendered judgment in

favor of GEI,1 and remanded the case for the district court to

determine the appropriate remedy. From that remand, however, we

withheld the issue of GEI’s entitlement to attorney’s fees incurred

in prosecuting this action, retaining jurisdiction for the limited

purpose of making that determination, and in turn certifying that

question to the Supreme Court of Texas. We asked:

In a policyholder’s successful suit for breach of

contract against an insurance company that is subject to

one or more of the provisions listed in § 38.006, is the

insurance company liable to its policyholder for

reasonable attorney’s fees incurred in pursuing the

breach-of-contract action, either under an Insurance Code

provision listed in § 38.006, or under § 36.001 if

application of one or more of those sections does not

result in the award of attorney’s fees?2

The Supreme Court of Texas answered in the affirmative:

We hold that in a policyholder’s successful suit for

breach of contract against an insurer that is subject to

the provisions listed in section 38.006, the insurer is

liable for reasonable attorney’s fees incurred in

pursuing the breach-of-contract action under section

38.001 unless the insurer is liable for attorney’s fees

under another statutory scheme. Accordingly, we answer

the certified question from the Fifth Circuit Court of

Appeals yes.3

1

197 F.3d 720 (5th Cir. 1999).

2

197 F.3d 730, 732 (5th Cir. 1999).

3

2000 WL 890386 (Tex. Jul 06, 2000)(NO. 99-1227), rehearing

overruled (Jan 18, 2001). To the extent that the Supreme Court of

Texas’s answer to our question in the instant case conflicts with

our decisions in Lafarge Corp. v. Hartford Cas. Ins. Co., 61 F.3d

389, 402-03 (5th Cir. 1995) and Bituminous Cas. Corp. v. Cacuum

Tanks, Inc., 975 F.2d 1130, 1133 (5th Cir. 1992), those cases are

2

GEI is therefore entitled to recover its reasonable attorney’s

fees.

As the district court originally ruled against GEI, that court

has not had an opportunity to determine the quantum of attorney’s

fees and costs to which GEI is entitled. We remand this additional

issue with instructions for the district court to conduct such

proceedings as it deems necessary and appropriate to ascertain the

amount of GEI’s reasonable attorney’s fees and costs, and to enter

judgment accordingly. This panel retains limited jurisdiction to

hear any appeal that might arise from the remand of this issue.

REMANDED on issue of attorney’s fees and costs; LIMITED

JURISDICTION RETAINED by this panel to hear future appeals, if any,

regarding attorney’s fees and costs.

no longer binding precedent of this Court. See FDIC v. Abraham,

137 F.3d 264, 268-69 (5th Cir. 1998).

3

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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