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Sunbeam Environmental Services2/22/2002
Appellants Sunbeam Environmental Services, Inc. (Sunbeam) and Alphonso Solomon and Company, Inc. (ASC) challenge a judgment favoring the Texas Workers' Compensation Insurance Facility (the Facility). The district court found appellants jointly and severally liable to the Facility for unpaid premiums, interest on those premiums, and attorney's fees. Because we find this cause is not barred by the statute of limitations and the evidence is sufficient to support the award, we affirm the district court's judgment.
BACKGROUND
Sunbeam and ASC are both Texas corporations wholly owned by Alphonso Solomon (Solomon). Sunbeam received workers' compensation insurance coverage through the Facility. The Facility was "a private, non-profit, unincorporated association of insurers authorized to write workers' compensation insurance in Texas for employers who are unable to obtain coverage through private insurance companies." See All Star Sheet Metal & Roofing, Inc. v. Texas Dep't of Ins., 935 S.W.2d 186, 189 (Tex. App.-Austin 1996, no writ).
This dispute concerns premiums on policies in effect in 1992 and 1993. Workers' compensation insurance premiums are based on payroll expenditures. Insureds are required to pay premiums based on their estimated payroll, but the final premium cannot be calculated until all salaries and wages for the coverage period have been disbursed. Part five of the standard workers' compensation insurance policy calls for a payroll audit to calculate the final premium within three years of the end of the coverage period. Coverage for Sunbeam under the first policy in this case began January 29, 1992. Upon learning that Sunbeam was a "combinable" risk with ASC because Solomon wholly owned both companies, the Facility required ASC to apply for coverage or the Facility would cancel Sunbeam's policy. ASC applied and, on February 21, 1992, was added as an insured through an endorsement on the first policy issued to Sunbeam. The two companies renewed coverage under the second policy for the year beginning January 29, 1993. The Facility canceled the second policy on June 8, 1993, for nonpayment of premiums and failure to make required reports.
The district court found that appellants owed the Facility for unpaid premiums on these policies, less an offset due for a refund of a maintenance tax. Audits showed that appellants owed $7,520.13 in additional premium on the first policy and $5,808.33 in premium on the second policy, less the credit of $871.47, yielding a total due of $12,456.99; the court also assessed prejudgment interest of $6,223.27, court costs, and postjudgment interest. The court awarded attorney's fees of $3114 plus additional amounts for appeals.
DISCUSSION
Appellants raise eight issues on appeal. They assert that limitations bars the Facility from recovering on the first policy. By five issues, they complain about various aspects of the evidence admitted in support of the judgment, including the sufficiency of the evidence. They further complain that the Facility did not give pre-suit notice sufficient to empower the court to award attorney's fees and that attorneys not designated as the attorney in charge purported to act for the Facility.
Limitations
Appellants contend that the statute of limitations bars the Facility's claims for premiums owed on the policy that expired at 12:01 a.m. on January 29, 1993. Because this is a suit for debt based on a breach of contract, a four-year statute of limitations applies. See Tex. Civ. Prac. & Rem. Code Ann. ยง 16.004 (West Supp. 2002). Appellants contend that the suit was filed too late because it was filed hours after the four-year period expi
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