Recent Developments
in Texas Law
Appellate: Civil; Business; Consumer;
Insurance;
Litigation; Personal Injury; Procedure.
PAJ, Inc. v. Hanover Ins. Co.
1-11-2008 05-08490
Insurance. Untimely notice of claim or suit does
not defeat coverage, unless the insured is prejudiced.
Exclusions
Breach of Contract; Property
Claunch v. Travelers Lloyds Ins. Co.
No. 07-0548
Property insurance policy excludes coverage
of flood due to broken sump pump.
Potentiality of Coverage
Hurricane Litigation; Homeowners
Chauvin v. State Farm Fire & Casualty Company
Value Policy Law applies only when total loss
results from covered peril.
Insurance; Litigation: Personal Injury;
Healthcare
Hochheim Prairie Casualty Insurance Co. v. Appleby
San Antonio- 1/16/08 04-07-00028-CV
Liability Coverage Dispute. Ps raised the
question whether the insured unintentionally knocked X down, causing her injury.
Agents; Exclusions; All Risks
FG Holdings Inc. v. London Am. Risk Specialists Inc.
No. 09-05-522 (Tex. App. Dec. 13, 2007)
Agent is not liable for failing to obtain
requested coverage
Insurance; Litigation;
Commercial
In the Estate of Stafford
Beaumont- 1/17/08
09-06-530-CV
Murder Forfeited Rights to Insurance Proceeds
Right to Arbitration Waived when this Defendant Substantially Invoked the Judicial Process
Insurers' award against chiropractic clinic for
fraud reversed.
Allstate Ins. Co. v. Receivable Fin.
Co. L.L.C.,
No. 05-10265 (5th Cir. Sept. 20, 2007)
Business; Litigation
Gaines v. Kelly
8/24/07 05-1092
Opinion by Justice Medina
Agent's
authority to act depends upon communication by principal.
Construction Defects
Commercial Liability
Lamar Homes Inc. v. Mid-Continent Cas. Co.,
No. 05-0832 (Tex. Aug 31,2007)
Homebuilder
sued for construction defects entitled to coverage.
Family; Procedure
Granger v Granger
Tyler- 9/26/07 12-06-00147-CV
Justice Griffith
Marital Property. Life Insurance was H's
separate property.
Appellate: Civil; Business; Consumer;
Insurance; Litigation.
National Plan Administrators, Inc. v. National Health Insurance Co.
9/28/07 05-0006
Justice Johnson
Fiduciary
duty not established where parties agreed that agent could act as it did.
Appellate; Civil; Insurance;
Litigation; Personal Injury
Mid-Continent Insurance Co. v. Liberty Mutual Insurance Co.
10/12/2007 05-0261
One of two primary
insurers is not, as an "other insured", required to reimburse other for cost of
settlement.
UIM Insurance covers prejudgment interest that the underinsured motorist would own the insured.
Insurer may have a duty to indemnify.
Athlete was not entitled to workers' compensation benefits.
Inundation caused by levee breach following Hurricane Katrina constitutes flood damage.
“Made whole” Doctrine does not bar insurer’s contractual subrogation claim.
"Made Whole" Doctrine Yields to Contractual
Subrogation Clause.
Court Considers Decades-Old Wilkinson
Exception in Insurance Law
Texas Lawyer
April 16, 2007
Article by Mary Alice Robbins
Supreme Court of Texas
Appellate: Civil; Business; Gov’t/Administrative; Labor/Employment; Litigation
County of Dallas v. Wiland
2/16/2007 – 04-0247
Employment. Deputy Constables covered by civil
service manual have a property interest in continued employment and a right to
procedural due process.
Appellate; Civil; Business;
Labor/Employment; Personal Injury.
Jack in the Box, Inc. v. Skiles
2/9/2007 – 05-0911
Employee owes no duty to warn employees of danger
known to employee.
Mid
Century v. Daniel
Feb. 7, 2007
Insurance
State Farm Life Insurance Co. v. Martinez
2/9/2007 – 05-0812
Interpleader Filed Late Allows Recovery of Penalties
for Late Period, but not after Interpleader is filed.
Litigation: Commercial;
Insurance; Real Estate; Procedure
Nathan A. Watson Company v. Employers Mutual Casualty Company
Fort Worth – 2/1/07 – 2-06-009-CV
Insurers’ Subrogation extended to liabilities as well
as rights.
Allstate v.
Edminster
Jan. 26, 2007
Procedure; Litigation:
Commercial; Litigation: Personal Injury; Criminal
Trantham v. Isaacks
Fort Worth – 1/25/07 – 2-06-184-CV
Frivolous suit sanction was not an abuse of
discretion.
Insurance; Procedure;
Litigation: Commercial
El Nagger Fine Arts Furniture, Inc. v. Indian Harbor Insurance Company
Houston-1 – 1/11/07 – 01-05-01069-CV
Res judicata did not bar suit against insurer.
Appellate: Civil; Insurance.
Litigation; Personal Injury; Procedure
Via Net v. TIG Insurance Co.
12/22/2006 – 05-0785
Limitations. Discovery Rule Inapplicable to Actions
for Failure to provide Insurance Coverage. Contracts.
Brainard v.
Trinity Universal Insurance Co.
Dec. 22, 2007
State Farm v.
Martinez
Dec. 7, 2006
Litigation: Personal Injury;
Insurance;
Litigation: Commercial
In Re: Allstate County Mutual Insurance Company
Tyler- 11/15/06 – 12-06-00164-CV
Bifurcation of Contractual & Extracontractual
Claims Against Insurer, Rather than Severance, was an Abuse of Discretion.
Veale v. Allstate
Nov. 13, 2006
GuideOne v. Cupps
Nov. 9, 2006
Pylant v.
Hartford Life
Nov. 9, 2006
Motiva
Enterprises v. Liberty Mutual
Nov. 6, 2006
KLN Steel v. CNA
Nov. 6, 2006
Johnson v.
State Farm
Oct. 27, 2006
Page
v. Liberty Life Ins.
Oct. 3, 2006
Cudd Pressure
Control v. Sonat Exp.
Sep. 26, 2006
Misrepresentation
Applications- Life
Application misrepresentation accusation against
insured fails.
Kirk v. Kemper Investors Life Ins. Co.
No. 05-0501 (S.D. Tex. Aug. 8, 2006)
Underinsurance
Setoffs-Auto
Third party may recover both UM and liability
limits under insured's policy.
Jankowiak v. Allstate Property & Cas. Ins. Co.
No. 05-0072 (Tex. App. Aug. 8, 2006)
Litigation: Personal Injury;
Litigation: Commercial; Discovery; Procedure
In Re Ben E. Keith Company, Inc.
Fort Worth-8/3/06- 2-06-071-CV
Justice McCoy
Severance of Business Tort Claims From Those
Concerning Distribution & Consumption of Spoiled Chili was Ordered.
Settlements
Negligence-Professional Liability
Insurer not liable to insured for failing to settle
malpractice action.
Archer v. Medical Protective Co. of Fe Wayne, Ind.
No. 07-05-0258 (Tex. App. July 13, 2006)
Healthcare; Insurance;
Litigation: Commercial
Archer v. Medical Protective Company of Fort Wayne, Indiana
Amarillo- 7/13/06 -07-05-0258-CV
Chief Justice Quinn
Medical Malpractice. Attorney hired by
insurer to defend physician was accused of breaching fiduciary duties to his
clients.
Insurance; Litigation: Personal Injury
Coastal refining & Marketing, Inc. v. United States Fidelity & Guaranty Company
Houston-14 - 5/30/06 - 14-04-00651-CV
Insurance Coverage Case. Insured Failed to
Prove it was Prejudiced by Late Notice, Etc.
Products
Liability. Product Failure, Standing Alone, is not Proof of a Product Defect.
Duty to Defend
Material Duties- Auto
Insured's failure to cooperate in defense
prejudicial to insurer.
Progressive County Mut. Ins. Co. v. Trevino
June 28, 2006 Tex. App. 04-05-00113
Insurance; Litigation: Personal Injury
Coastal refining & Marketing, Inc. v. United States Fidelity & Guaranty Company
Houston-14 - 5/30/06 - 14-04-00651-CV
Statue of Limitations
Breach of Contract-Commercial Liability
Amended underlying pleading is accrual date for
commercial liability claim.
Ericsson Inc. v. St. Paul Fire and Marine Ins. Co.
No.05-0816 (N.D. Tex. March 27, 2006)
Potentiality of Coverage
Negligence-Auto
Non-permissive driver of car not covered by
insured's policy.
Atkinson v. Snodgrass
March 16, 2006 Texas App. 11-05-00011-CV
Potentiality of Coverage
Mold Litigation-Homeowners
Insureds not entitled to damages in excess of
coverage.
Fire Ins. Exch. v. Sullivan
No. 14-04-00081 (Tex. App. Feb. 7, 2006)
Standing to Sue
Misrepresentation-Life
Funeral Service Provider Lacks Standing to Sue
Insurer who Funds Service Contracts.
Stewart Family Funeral Homes Ltd. v. Funeral Directors' Life Ins. Co.
No. 05-116 (E.D. Tex. January 23, 2006)
Duty to Defend
"Occurance"-Homeowners
Late completion of construction not an occurrence
under policy.
Jennings v. State Farm Lloyds
No. 03-04-00477 (Tex. App. Jan.12, 2006)
Beneficiaries
Attorney's Fees-Life
Insurer confronted with competing claims entitled to interpleader and
attorney fees.
McCall v. AXA Equitable Life Ins. Co.
No. 14-04-01111-CV (Tex. App. January 3, 2006)
Preemption
Bad Faith-Flood
National Flood Insurance Act preempts state law
tort claims.
Gallup v. Omaha Property and Cas. Ins. Co.
No. 04-31213 (5th Cir. Dec. 21, 2005)
Additional Insured
Exclusions-Business Liability
Premises owner is entitled to coverage in negligence
suit as additional insured.
ATOFINA Petrochemicals Inc. v. Continental Cas. Co.
No. 04-0170 (Tex. Dec. 16, 2005)
Duty to Defend
Notice-Union Liability
Insurer must pay insured's defense costs despite
late notice.
Ulico Cas. Co. v. Allied Pilots Ass'n.
No. 2-04-120 (Tex. App. Dec. 15, 2005)