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MUÑOZ v. STATE FARM LLOYDS OF TEXAS

No. 06-40827.

522 F.3d 568 (2008)

Luis C. MUNOZ and Carmela Munoz, Plaintiffs-Appellees-Cross-Appellants, v. STATE FARM LLOYDS OF TEXAS, Defendant-Appellant-Cross-Appellee.

United States Court of Appeals, Fifth Circuit.

March 28, 2008.

Attorney(s) appearing for the Case

Gustavo Ch. Garza, Los Fresnos, TX, Rene B. Gonzalez (argued), Brownsville, TX, for Plaintiffs-Appellees-Cross-Appellants.

Levon G. Hovnatanian (argued), Bruce Edwin Ramage, Martin, Disiere, Jefferson & Wisdom, Warren Royal Taylor, Taylor & Taylor, Houston, TX, for State Farm Lloyds of Texas.

Before REAVLEY, BENAVIDES and ELROD, Circuit Judges.

BENAVIDES, Circuit Judge:

This case involves the recovery of funds under a fire insurance policy. The jury found in favor of Appellees and awarded them in excess of $250,000. We find that the district court committed reversible error when it admitted evidence that a grand jury did not indict Appellee Luis Muñoz for arson. Therefore, we REVERSE and REMAND for a new trial.

I.

Appellant State Farm Lloyds ("State Farm") provided a homeowners insurance...

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