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ACCEPTED
01-16-00159-CV
FIRST COURT OF APPEALS
HOUSTON, TEXAS.
2126/2016 9:51:14 AM
CHRISTOPHER PRINE
CLERK
2015-19233 P-14
NO
SILEDIN-
1st COURT OF APPEALS
HOUSTON, TEXAS
IN THE COURT OF APPEALS
FOR THE FIRST OR FOURTEENTH DISTRICU{E, ict Srve
HOUSTON, TEXAS
In Re
TERRY MURPHY.
Relator
The Honorable Caroline Baker,
295" District Court Judge, Respondent
PETITION FOR WRIT OF MANDAMUS
ARGUELLO, HOPE & ASSOCIATES, PLLC
Rania Mohsen
Texas Bar No. 24098121 FILED
Chris Daniel
1110 Nasa Parkway, Suite 620 District Clerk
Houston, Texas 77058
281-532-5529 (Tel.) FEB 2 6 2016
ime:
281-402-3534 (Fax) Harris County, Texas
By.
Deputy
Attorney for Relator, Terry Murphy
ORAL ARGUMENT REQUESTED
LIST OF PARTIES AND COUNSEL
Relator:
Terry Murphy
Counsel for Relator
ARGUELLO, HOPE & ASSOCIATES
Rania Mohsen
Texas Bar No. 24098121
1110 Nasa Parkway, Suite 620
Houston, Texas 77058
281-532-5529 (Tel.)
281-402-3534 (Fax)
Respondent:
The Honorable Caroline Baker
295" District Court Judge
Harris County, Texas
201 Caroline, 14" Floor
Houston, Texas 77002
Real Party in Interest:
Allstate Vehicle and Property Insurance Company
Andrew Singeltary
Trial Court Counsel:
HOPE & CAUSEY, P.C.
Mr. John M. Causey, Esq.
P.O. Box 3188
Conroe, Texas 77305
936-441-4674 (Fax)
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TABLE OF CONTENTS
IDENTITY OF PARTIES AND COUNSEL I
TABLE OF CONTENTS Wt
INDEX OF AUTHORITIES. Iv
STATEMENT OF THE CASE .
STATEMENT OF JURISDICTION. Vi
ISSUE PRESENTED.......:0ccecees Vil
1. Whether, pursuant to Section 541.161 of the Texas Insurance
Code, a court presiding over a suit in which an insured brings an
action against his or her insurer is required to grant an insured’s
motion to compel mediation? (Yes.)
STATEMENT OF RELEVANT FACTS.
SUMMARY OF ARGUMENT.
ARGUMENT
I Mediation is Mandatory Pursuant to Texas Insurance Code
Section 541.161.
PRAYER
CERTIFICATION.
CERTIFICATE OF SERVICE
APPENDIX (Attached hereto as Exhibits)
Plaintiff's Motion to Compel Mediation Pursuant to
Texas Insurance Code, Section 541.161 Exhibit A
Order Denying Plaintiff's Motion to Compel
Mediation......c.cceccecesesesesseseseesssscncstesesssessesesneseeresnesneaseeseneneensaeeneeeeeees Exhibit B
Plaintiff's Motion for Reconsideration of Order Denying
Denying Plaintiff's Motion to Compel Mediation
Pursuant to Texas Insurance Code, Section 541.161 Exhibit C
Plaintiff's Reply In Support of Motion to Compel Mediation
Pursuant To Texas Insurance Code, Section 541.161 Exhibit D
Defendants’ Response to Plaintiff's Motion to Compel
Mediation Pursuant to Texas Insurance Code, Section 541.161 Exhibit E
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Tex. Ins. Code § 541.161 Exhibit F
INDEX OF AUTHORITIES
Statutes
Tex. Ins. Code § 541.161 1,3,4,
Cases
Walker v. Packer, 827 S.W.2d 833, 839 (Tex. 1992)
Axelson, Inc. v. Mcllhany, 798 S.W.2d 550, 556 (Tex. 1990)... 4-5
iv
’
STATEMENT OF THE CASE
Underlying Proceeding:
Suit arising from a claim under a homeowner’s insurance policy and alleging
breach of contract, violations of the Texas Insurance Code, and breach of the
common law duty of good faith and fair dealing.
Respondent:
Honorable Caroline Baker, Judge, 295" Judicial District Court of Harris
County, Texas.
Respondent’s Action from Which Relator Seeks Relief:
August 3, 2015 Order denying Relator’s Motion to Compel Mediation
pursuant to Section 541.161 of the Texas Insurance Code.
Prior Petitions/Motions:
Relator’s Motion for Reconsideration of Order Denying Plaintiffs Motion to
Compel Mediation Pursuant to Texas Insurance Code, Section 541.161 filed
in the 295" District Court of Harris County, Texas, on August 31, 2015.
Motion for Reconsideration denied.
STATEMENT OF JURISDICTION
The Court has jurisdiction to consider this petition. for writ of mandamus
under Tex. Gov’t Code § 22.221.
vi
ISSUE PRESENTED
1, Whether, pursuant to Section 541.161 of the Texas Insurance Code, a court
presiding over a suit in which an insured brings an action against his or her
insurer is required to grant an insured’s motion to compel mediation? (Yes.)
vii
STATEMENT OF RELEVANT FACTS
On April 20, 2015, Relator Terry Murphy (hereafter “Relator”) filed in the
295" District Court of Harris County, Texas her Original Petition against the Real
Parties in Interest, Allstate Vehicle and Property Insurance Company (hereafter
“Allstate”) and Andrew Singletary (hereafter “Singletary”). In her petition, Relator
alleged the causes of actions of breach of contract, breach of the duty of good faith,
and violations of the Texas Insurance Code, and asks for monetary relief between
$200,000.00 to $1,000,000.00 for the violations thereof. On May 8, 2015 and May
11, 2015, Allstate and Singletary were served with Relator’s petition respectively.
On June 18, 2015, Relator filed her Motion to Compel Mediation (“Motion”)
pursuant to Texas Insurance Code Section 541.161, which requires mandatory
mediation upon the filing of a motion to compel mediation within 90 days of the
filing ofa petition. TEX. INS. CODE § 541.161(b) (“The Court shall, not later than the
30" day after the date a motion under this section is filed, sign an order setting the
time and place of the mediation.” /d. (emphasis added)).
Subsequently, on June 22, 2015, Allstate and Singletary attempted to invoke
the appraisal provision of the insurance contract. Thereafter, on July 5, 2015, Allstate
and Singletary filed their Response to Relator’s Motion, wherein they suggested that
the Court deny Relator’s Motion since Allstate and Singletary invoked the appraisal
provision of the insurance contract. Exhibit E, § II. Allstate and Singletary stated
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that appraisal is another form of alternative dispute resolution that may “resolve the
dispute between the parties making mediation unnecessary.” Jd. However, Allstate
and Singletary failed to cite or provide any legal authority in support of this
suggestion.
On July 8, 2015, Relator filed her Reply in Support of Motion to Compel
Mediation pursuant to Texas Insurance Code, Section 541.161. In this reply, Relator
brought to the Court’s attention that not only have Allstate and/or Singletary
breached the contract, relieving Relator of any further obligations under the contract,
but also, in the alternative, Allstate waived it’s right to invoke the appraisal provision
due to its extreme delay in requesting the same and the prejudice suffered by Relator.
Exhibit D, § 1
Nevertheless, on August 3, 2015, this Court denied Plaintiff's Motion to
Compel Mediation pursuant to Texas Insurance Code Section 541.161. Furthermore,
on September 14, 2015, the Court granted Allstate and Singletary’s Motion to
Compe! Appraisal. Relator subsequently filed a Motion for Reconsideration
requesting that the Court reverse its ruling on Plaintiffs Motion to Compel
Mediation and Defendants’ Motion to Compel Appraisal, which was denied by the
Court.
1x
SUMMARY OF ARGUMENT
An appellate court must grant a writ of mandamus if a trial court has abused
its discretion or violated a legal duty and there is no adequate remedy by appeal.
Walker v. Packer, 827 §.W.2d 833, 839 (Tex. 1992). These criteria are clearly
present and met in the instant action. Pursuant to Section 541.161 of the Texas
Insurance Code, if a plaintiff insured in an action against the defendant insurer files
a motion to compel mediation, Texas courts are required to order mediation. As a
result, Respondent clearly abused her discretion and violated her legal duty under
the Texas Insurance Code by denying Relator’s Motion to Compel Mediation
Pursuant to TEX. INS. CODE § 541.161.
ARGUMENT
Mediation is Mandatory Pursuant to Texas Insurance Code Section
541.161
Section 541.161 makes mediation mandatory under the following situations:
(a) A party may, not later than the 90th day after the date a pleading seeking
relief under this subchapter is served, file a motion to compel mediation of
the dispute in the manner provided by this section.
(b) The court shall, not later than the 30th day after the date a motion under
this section is filed, sign an order setting the time and place of the mediation.
(c) The court shall appoint a mediator if the parties do not agree on a mediator.
(d) The mediation must be held not later than the 30th day after the date the
order is signed, unless: (1) the parties agree otherwise; or (2) the court
determines that additional time not to exceed 30 days is warranted. TEX. INS.
Copk§ 541.161
The only exception to mandatory mediation is that “a party may not compel
mediation under this section if the amount of actual damages claimed is less than
$15,000 unless the party seeking to compel mediation agrees to pay the costs of the
mediation.” TEX. INS. CODE §541.161(f).
Relator’s cause of action against Allstate and Singeltary was filed on April 2,
2015. Allstate was served on May 8, 2015, and Singeltary was served on May 11,
2015. Section 541.161(a) requires that the Motion to Compel Mediation pursuant to
the Texas Insurance Code be filed within ninety days after the date a pleading is
served. Relator filed her Motion to Compel Mediation within forty-five days of both
parties being served. As a result, Relator’s Motion was timely filed and should have
been granted by Respondent.
Moreover, the damages in this matter, as pled, exceed $15,000.00. Therefore,
the only exception to the mandatory appraisal provision of Section 541.161 does not
apply. See TEX. INS. CODE §541.161(f). Thus, the Court had no valid reason under
Texas law to deny Relator’s Motion to Compel Mediation, and Respondent should
have ordered the Relator, Allstate and Singeltary to attend mediation and participate
in good faith. Finally, by filing a Motion to Reconsider the matter with the Court,
Relator has taken the requisite predicate actions necessary for mandamus relief. See
Axelson, Inc. v. Mellhany, 798 S.W.2d 550, 556 (Tex. 1990) (holding that mandamus
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relief generally requires a predicate request for an action and a refusal of that
request).
PRAYER
Because the district court abused its discretion in denying Relator’s Motion to
Compel Mediation, and because Relator has no effective remedy on appeal, this
Court should grant this Petition for Writ of Mandamus, ordering Relator, Allstate
and Singeltary to attend mediation pursuant to Section 541.161 of the Texas
Insurance Code, and remand the matter to the district court for further proceedings
consistent with that ruling.
Respectfully Submitted,
ARGUELLO, HOPE & ASSOCIATES
By: /s/ Rania Mohsen
Rania Mohsen
Texas Bar No. 24098121
Fed. Id No: 2798532
1110 Nasa Parkway, Suite 620
Houston, Texas 77058
281-532-5529 (Tel.)
281-402-3534 (Fax)
Attorney for Relator, Terry Murphy
xii
CERTIFICATION
Before me, the undersigned authority, on this day personally appeared Rania
Mohsen, who being by me first duly sworn, did depose and say:
1. “Iam over 21 years of age, have never been convicted of a felony, and am
fully competent to make this affidavit/certification.
“Tam the Attorney for Plaintiff in this lawsuit.
“T have read the Petition for Writ of Mandamus. The facts set forth therein are
within my personal knowledge based on my direct involvement in this matter.
“The facts stated in the Petition for Writ of Mandamus are true and correct.”
Lasud
Rania Mohsen
Mol
Subscribed and sworn to before me, the undersigned authority, on this 1
day of , 200K.
Sain ‘SHARI VALENTINE
Notary Public, State of Texas
‘Comm. Expires 01-29-2017
un Notary ID 129264807 Public, State of Texas
xiii
CERTIFICATE OF SERVICE
I certify that I served a true and correct copy of the foregoing Petition for Writ
of Mandamus on the Respondent and on counsel for the Real Party in Interest in this
action on February 26th, 2016, by United States certified mail, return receipt
requested.
Respondent:
The Honorable Caroline Baker
295" District Court Judge
Harris County, Texas
201 Caroline, 14" Floor
Houston, Texas 77002
Real Party in Interest:
Allstate Vehicle and Property Insurance Company
Andrew Singeltary
Trial Court Counsel:
HOPE & CAUSEY, P.C.
Mr. John M. Causey, Esq.
P.O. Box 3188
Conroe, Texas 77305
936-441-4674 (Fax)
/s/ Rania Mohsen
Rania Mohsen
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