'Bondability' Letter Is Not A Contract: Texas Court

Law360, New York (April 20, 2009, 12:00 AM EDT) -- A Texas appeals court has stripped a jury's $4.7 million damages award in a developer's lawsuit claiming a “bondability” letter issued by Hartford Fire Insurance Co. amounted to a binding contract and accusing the insurer of fraud in connection with a failed construction deal.

The opinion, issued Thursday in the Court of Appeals of Texas, concluded that the trial court erred when it submitted the issue to a trial jury as a breach of contract and fraud matter.

The issue in the case is whether a...
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