Claimant/Named Insured Limited to $30K Statutory Minimum when Houston First Court Declines to Find a “Separation of Insureds” Implied in Auto Policy
A closer look at Texas Farm Bureau Mutual Ins. Co. v. Minchew.
Fifth Circuit Interprets Texas’s No-Direct-Action Rule As Applied To Third Party Plaintiffs With Underlying Default Judgment
It is well-settled Texas law that plaintiffs are prevented from directly suing a defendant’s insurer unless and until a final judgment or settlement has resolved the litigation at issue. A related line of cases sets out when a third party (not the insured) can bind a non-participating insurer to an underlying judgment or settlement.
Case Note: In Re Farmers Texas County Mutual Insurance Company
Texas law has long disfavored the now uncommon practice of liability insurers “soliciting a contribution to a settlement from its insured without first committing its own policy limits.” The Supreme Court of Texas was recently faced with such a situation.
Subject to Exceptions? Texas Supreme Court Accepts Challenge to “Eight Corners” Rule
Last March, the Texas Supreme Court issued its opinion in Richards v. State Farm Lloyds, unanimously ratifying the “Eight Corners” Rule as a settled feature of Texas law. However, the Court set the stage for future challenge to this consensus when it noted the “Eight Corners” Rule could “possibly” be “subject…to exceptions.” Which exceptions? How many exceptions? It appears we may soon find out.
A Mediator’s Take on COVID-19: Part II
An update on early COVID-19 coverage rulings. While only a handful of the hundreds of pending cases have been decided, one trend is emerging...
The Protracted Battle over Obamacare: Supreme Court Rules in Favor of Healthcare Insurers under the Affordable Care Act
On April 27, 2020, the U.S. Supreme Court ruled in favor of four health insurance companies, recognizing their right to sue the federal government for unpaid subsidies under the Patient Protection and Affordable Care Act (ACA).
Extra-contractual Claims in the Context of Underinsured Motorist Coverage
The Southern District of Texas, McAllen Division recently issued an opinion in a UIM case that precludes the recovery of extra-contractual damages absent a finding that the insured was entitled to benefits.
Insurer’s Payment of Appraisal Award Not Complete Bar to Extra-Contractual Claims
The Supreme Court recently issued three per curiam opinions clarifying the effect of an insurer's payment of an appraisal award.
Texas Supreme Court Rejects Language-based Exception to Eight-Corners Rule
The Court has addressed — and rejected — a language-based exception, under which an insurer’s duty to defend is determined by the claims alleged in the petition and the coverage provided in the policy documents.
Texas Supreme Court Adopts Collusive-Fraud Exception to Eight Corners Rule
The Texas Supreme Court has—for the first time—expressly adopted an exception to the eight-corners rule, to be applied in cases where the insured and a third party fraudulently collude to secure a defense.