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In re Farmers Texas County Mutual Insurance Co.

Court: Tx Sup  04/23/2021  Divided Court Holds Insured Can Sue Insurer for Reimbursement of Sums the Insured Paid to Settle Lawsuit

The Court found that the trial court had abused its discretion when it refused to dismiss an insured's Stowers claim arising out of a settlement in which the insurer required the insured to contribute to the settlement sum because the lawsuit settled within the policy limits, but the insured could sue the insurer for breaching its duty to indemnify based on the insurer's demand that the insured make a contribution.

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