Thompson Coe Partners Secure Appellate Result in Coverage Matter Involving Contractual Limitations

Dallas partners Rhonda Thompson and Shelby Hall secured a defense result when the appeals court affirmed the trial court’s summary judgment win for their carrier client Homeowners of America Insurance Company (HAIC) in an insurance coverage matter alleging claims of breach of contract, anticipatory breach, violations of the Insurance Code and Deceptive Trade Practices Act (“DTPA”), breach of the duty of good faith and fair dealing, fraud, and conspiracy.

Appraisal Process and Contractual Limitations

This case arose out of a May 2017 hail storm and the subsequent roof damage. After suit was filed, the Defendant was initially granted a 91a Dismissal. Plaintiffs appealed, and the case was remanded. Following a second summary judgment filed by Defendant, the court ruled in favor of HAIC, and Plaintiffs appealed again.

This case has important ramifications in terms of the appraisal process and contract interpretation. In this case, the appraisal process was continually misconstrued by policyholder counsel with multiple appraiser designations over a period of months and the expiration of contractual limitations. In considering HOAIC’s motion for summary judgment on the applicability of the statutes of limitations, the court focused on both the appraisal and suit-against-us provisions of the policy. The court held that the two-year and one day provision of the contract applies to all causes of action asserted against HOAIC, including fraud. Notwithstanding that invocation and completion of appraisal is a condition precedent, contractual limitations nonetheless apply.

The case is Sidney Davis and Shatika Davis v. Homeowners of America Ins. Co., (Tex. App. – Dallas April 7, 2025).