Trejo v. Allstate Fire and Casualty Insurance Co.

Court: WD Tx  09/19/2019  Magistrate Judge Recommends Remand to State Court in Light of Viable Claim for Bad Faith Denial of Coverage by Claims Adjuster

The court noted that a split in authority exists as to whether an adjuster can be liable under Texas Insurance Code § 541.060(a)(2)(A) for “failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement of a claim with respect to which the insurer’s liability has become reasonably clear," but the removal statute is to be strictly construed and any doubt requires resolution in favor of remand.

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Texas Insurance Codediversity jurisdictionunjust enrichmentbreach of contractchapter 541motion to remanduniform declaratory judgment actcommon law duty of good faith and fair dealingmotion to dismissremovalDeceptive Trade Practices ActDTPAunderinsured motoristUIMAutomobile liability insurance policy

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