Texas Insurance Law Newsbrief - March 24, 2017

March 24, 2017

SAN ANTONIO FEDERAL COURT DISMISSES EXTRA-CONTRACTUAL CLAIMS, RECOGNIZES STOWERS AS SOLE REMEDY UNDER LIABILITY POLICY

Last Friday, a federal district court in San Antonio dismissed via Rule 12(b)(6) motion all extra-contractual claims asserted under a third-party liability insurance policy, enforcing established Texas law holding that a liability insurer's extra-contractual duties to its insured (and, by extension, a judgment creditor) are limited to the Stowers duty to reasonably respond to a settlement proposal within policy limits. Read more...

FIFTH CIRCUIT HOLDS THAT BILLING GUIDELINES DID NOT PROVIDE REASONABLE BASIS FOR INSURER TO DEDUCT CLAIMED LEGAL EXPENSES INCURRED BY ITS INSURED

Last week, the Fifth Circuit Court of Appeals held an insurer arbitrarily relied on billing guidelines to deduct costs of defending its insured against professional liability claims and allowed the insured’s breach of contract claims to proceed.  Read more...