Property Insurers: Beware Getting Stuck In Texas State Court

By Matthew Kolodoski and Harrison Yoss (May 16, 2019, 2:57 PM EDT) -- To curb abusive lawsuits and litigation tactics against property insurers (especially out-of-state carriers), the Texas legislature created Chapter 542A of the Texas Insurance Code, which went into effect on Sept. 1, 2017. Since that time, both state and federal courts in Texas have considered what effect the new provisions have on Texas law. However, one area that is still being considered by federal courts in Texas relates to the issue of removal following an election of liability under Section 542A.006.

Election of Legal Responsibility

Prior to the adoption of Chapter 542A, one abusive litigation tactic regularly employed by policyholders (or at...

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