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In re USAA General Indemnity Co.

Court: Tx Sup  05/07/2021  Divided Court Holds Insured Not Bound in UIM Suit to Verdict Rendered in the Underlying Suit Against Tortfeasor

The Court found that the trial court did not abuse its discretion when it refused to render judgment for an auto insurer in a lawsuit against an insured seeking uninsured motorist benefits based on a verdict rendered in the underlying lawsuit because the insured and tortfeasor had settled and dismissed the underlying lawsuit prior to the entry of judgment and, therefore, collateral estoppel did not attach, so the tortfeasor's liability would have to be re-litigated in the UIM lawsuit.

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