Texas Justices Take Up State Farm's Bad Faith Battles

Law360 (August 28, 2020, 10:27 PM EDT) -- The Texas Supreme Court on Friday agreed to decide whether lower courts erred in refusing to require two injured State Farm policyholders to first obtain judgments that they are entitled to underinsured motorist coverage before they can proceed with allegations that the insurer mishandled their claims in bad faith.

In an online order, the Texas high court said it will hear consolidated arguments Dec. 2 on a pair of petitions filed by State Farm Mutual Automobile Insurance Co. in similar disputes with policyholders Al Dodds and Al Nicastro.

The insurer has argued that lower courts erred when they refused to abate...

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