Shelton Insurance Agency v. St. Paul Mercury Insurance Co.
This case involves an appeal by Shelton Insurance Agency and John M. Roberts against St. Paul Mercury Insurance Company regarding the alleged mishandling of an insurance claim. Shelton Agency initially sued St. Paul for violations of the DTPA, Texas Insurance Code, breach of contract, and breach of the duty of good faith and fair dealing after St. Paul denied coverage to its customer, Frio Drilling Company. A jury found in favor of Shelton Agency, awarding actual and exemplary damages, but the trial court granted St. Paul's motion for judgment n.o.v. The appellate court affirmed the trial court's judgment on the DTPA, insurance code, breach of good faith, and punitive damages claims. However, it reversed and rendered the judgment on the breach of contract claim, ruling that Shelton Agency was entitled to recover $34,000 for premiums it wrote off.