Norstrud v. Trinity Universal Insurance Co.

OPINION

SUE WALKER, Justice.

I. Introduction

Trinity Universal Insurance Company (“Trinity”) denied a claim by its insureds, Daniel and Betty Norstrud (“Norstruds”), for damage to the Norstruds’ home when its foundation moved. The Norstruds sued Trinity for breach of contract, breach of the duty of good faith and fair dealing, and violations of the Deceptive Trade Practices Act and insurance code. A jury found that the movement of the foundation of the Norstruds’ home was not caused by an accidental discharge, leakage, or overflow of water from the sprinkler system. Accordingly, under the terms…