Mealey's Texas Insurance

  • June 25, 2026

    Magistrate Issues Ruling In Texas Federal Case Involving Subrogation, LTD Claim

    SHERMAN, Texas — Rejecting an insurer’s “flawed interpretation of the subrogation provision” under Texas law, a Texas federal magistrate judge granted summary judgment for a long-term disability (LTD) claimant on all claims asserted by an insurer, then ruled that the claimant’s counterclaims for breach of contract and attorney fees survive because of fact questions.

  • June 24, 2026

    Texas Panel Affirms Ruling For Insurer In Dispute Over Missing Wine Bottles

    HOUSTON — A Texas appeals panel affirmed a lower court’s dismissal of a lawsuit seeking coverage for missing wine bottles that were stored in wine lockers at the insured’s club, ruling that the policies do not provide coverage for third parties who secured a $1,110,411.70 judgment against the insured and the right to enforce coverage.

  • June 19, 2026

    Homeowner Insurer Fights Dismissal Of Remaining Claim Against Reinsurance Broker

    DALLAS — A homeowner insurer opposed a reinsurance broker’s renewed bid to dismiss the remaining breach of contract claim in the insurer’s suit over losses tied to the Vesttoo Ltd. collapse, arguing that Vesttoo and China Construction Bank Corp. (CCB) are not required parties because the claim revived by the Fifth Circuit U.S. Court of Appeals concerns the broker’s own alleged failure to perform administrative duties under a 2017 reinsurance intermediary authorization agreement (RIAA), not any liability determination against the alleged nonparty fraud actors.

  • June 18, 2026

    Insurers Reach Settlement In Chemical Exposure Suit Pending In Texas Federal Court

    AUSTIN, Texas — Two insurers embroiled in a dispute over coverage for the settlement of an underlying lawsuit arising out of an employee’s injuries caused by exposure to polyvinyl chloride (PVC) and other chemicals filed a joint notice of settlement in Texas federal court after reaching an agreement to resolve their claims.

  • June 17, 2026

    Texas High Court Agrees To Review Take Nothing Judgment In Exxon’s Coverage Suit

    AUSTIN, Texas — The Texas Supreme Court granted Exxon Mobile Corp.’s petition seeking review of an appellate court’s ruling that reversed and rendered judgment that Exxon take nothing against its umbrella insurer in its lawsuit seeking coverage for an underlying $35 million injury settlement arising from an oil refinery explosion.

  • June 15, 2026

    Breach Of Contract Claim To Proceed In Storm Damage Dispute, Magistrate Judge Says

    DALLAS — An insured’s claims for breach of contract and violation of the Texas Prompt Payment Claims Act can proceed because questions of fact exist over whether all of the damage incurred to an insured home was caused by a wind and hail storm, a Texas federal magistrate judge held in partially denying the insurer’s motion for summary judgment.

  • June 09, 2026

    5th Circuit: Insured’s Loss Falls Squarely Under Policy’s Deception Fraud Provision

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals affirmed a federal court’s dismissal of an insured’s breach of contract and bad faith lawsuit seeking full crime coverage for its losses arising from $1,251,068.34 it paid to a fraudulent account, agreeing with the lower court that coverage is limited to the policy’s $100,000 Deception Fraud Provision.

  • June 09, 2026

    Known Pollution Exclusion Bars Coverage For Carbon Monoxide Injury Suit, Panel Says

    NEW ORLEANS — Following a district court’s finding on remand that complete diversity of citizenship exists between an insured and the named insurers, the Fifth Circuit U.S. Court of Appeals on June 8 affirmed the lower court’s summary judgment ruling entered in favor of the insurers, agreeing with the lower court that no coverage is owed pursuant to the policy’s known pollution conditions exclusion for the settlement of an underlying personal injury suit stemming from carbon monoxide exposure.

  • June 09, 2026

    Panel: Judge Must Explain Why Amending Contamination Coverage Complaint Is Futile

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals vacated and remanded a district court’s denial of two motions for leave to file an amended complaint filed by the successor company of an insured in a suit seeking coverage for an underlying oil contamination lawsuit because the lower court failed to “articulate its reasoning” as to why the addition of other plaintiffs would be futile.

  • June 08, 2026

    Assault Or Battery Exclusion Bars Coverage For Negligence Suit, 5th Circuit Says

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on June 5 affirmed a lower federal court’s ruling that a commercial general liability insurance policy’s assault or battery exclusion barred coverage for an underlying negligence lawsuit arising from the sexual assault of a minor by a security guard, rejecting the appellants’ argument that the term “all locations” in the policy exclusion is ambiguous.

  • June 03, 2026

    Company Appeals Dismissal Of Suit Challenging Policy Termination To 5th Circuit

    SAN ANTONIO — A holding company that purchased a life insurance policy in bankruptcy and sued the insurer for declaratory judgment and breach of contract for allegedly wrongfully terminating the policy before the sale filed an appeal in a Texas federal court to a judge’s order and judgment granting summary judgment to the insurer and dismissing the case for failure to show genuine issues of material fact.

  • June 02, 2026

    Texas Panel Affirms Insurer’s Interpretation Of Vandalism Coverage In Damages Suit

    HOUSTON — A panel of the Texas First Court of Appealsaffirmed a trial court’s grant of summary judgment to an insurer sued for breach of contract, bad faith and violations of state insurance laws for denying coverage for damages that occurred at a residential rental property, finding that the insurer properly interpreted the policy to exclude coverage for damages resulting from “vandalism and malicious mischief.”

  • June 02, 2026

    Experts Nixed, Insurer Granted Summary Judgment In Storm Damage Coverage Dispute

    FORT WORTH, Texas — A Texas federal judge held that the testimony of two experts in a dispute over insurance coverage for alleged storm damage to two commercial buildings was inadmissible and that the insurer is entitled to summary judgment on breach of contract and state insurance law claims because the insured failed to provide evidence from which a jury could segregate covered and uncovered damages.

  • June 02, 2026

    Federal Judge Grants Request To Compel Appraisal In Storm Damage Coverage Dispute

    McALLEN, Texas — Finding that an insurer did not prove that appraisal was waived and that a dispute over the amount of loss is properly resolved through appraisal, a Texas federal judge granted an insured’s request to compel appraisal of damage to her home in her lawsuit against the insurer alleging breach of contract, bad faith, fraud and violations of state insurance laws over coverage after a storm.

  • June 01, 2026

    Insurer Responds To Company’s Objection To Recommendation In Defense Coverage Case

    SHERMAN, Texas — In a May 27 filing, the insurer of an infectious disease lab testing company urged a Texas federal judge to adopt a magistrate judge’s recommendation granting the insurer judgment on the pleadings in a dispute over defense coverage for regulatory claims, arguing that the liability policy clearly limits coverage for such claims and that the limit applies to the company’s defense costs.

  • June 01, 2026

    High Court Won’t Review ERISA Case Involving Health Care Claims Assignment

    WASHINGTON, D.C. — The U.S. Supreme Court on June 1 denied a certiorari request concerning a ruling that health insurance plan petitioners and trade association amici curiae contended wrongly broadened equitable estoppel under the Employee Retirement Income Security Act; the respondents — Texas emergency medicine physician groups — had countered that the petition is “based on a description of the case that bears no resemblance to reality” and needlessly seeks “to resolve a split in authority that does not exist.”

  • June 01, 2026

    Claims Against Insurer Fail Based On Payment Of Appraisal Award, Judge Says

    GALVESTON, Texas — Claims for breach of contract, bad faith and violations of Texas law should not proceed against a homeowners insurer because they fail based on the insurer’s payment of an appraisal award, a Texas federal magistrate judge said May 29 in recommending that the insurer’s motion for summary judgment be granted.

  • May 28, 2026

    Insurer Says Federal Judge Lacked Full Record In Time-Barred UIM Benefits Dispute

    HOUSTON — An insurer seeking reconsideration of a Texas federal judge’s denial of a summary judgment motion on a counterclaim in a years-long motor collision coverage dispute contends that the judge “put the cart before the horse” and did not have all of the proper evidence available when finding that the insurer did not prove that the statute of limitations had run.

  • May 28, 2026

    Federal Judge Dismisses $1.2M Cyber Liability Coverage Suit After Parties Settle

    DALLAS — One day after an insured and its cyber insurer filed a joint motion to dismiss, a federal judge in Texas dismissed the insured’s lawsuit seeking coverage for its more than $1.2 million in losses arising from a malware attack.

  • May 27, 2026

    Building Owner’s State Law Claims Against 2 Of 3 Insurers In Payment Suit Nixed

    DALLAS — Texas insurance law claims against two of three insurance companies named in a federal lawsuit filed by a commercial building owner alleging inadequate payment for wind and hail damages were dismissed after a judge determined that the insured failed to provide necessary, specific details and did not offer “any meaningful factual support” for the allegations.

  • May 22, 2026

    5th Circuit: Insured Failed To Meet Burden Under Texas Law To Show Timing Of Loss

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals held that an insured failed to satisfy her burden under Texas law to demonstrate the timing of her alleged loss arising from hail damage to her roof, affirming a lower federal court’s grant of summary judgment in favor of the insurer in the insured’s lawsuit for breach of contract, bad faith and violations of the Texas Insurance Code.

  • May 21, 2026

    Judge: Some Of Pool Construction Company’s Claims Against Insurer May Continue

    AUSTIN, Texas — A federal judge granted in part and denied in part an insurer’s motion to dismiss a pool construction company’s suit against it stemming from two underlying suits for property damage and construction defects, finding that the company provided sufficient allegations to plausibly support the company’s claims for breach of contract and bad faith, but not its claims for declaratory relief or under the Texas Deceptive Trade Practices Act (DTPA) or the Texas Insurance Code.

  • May 15, 2026

    Magistrate Judge Finds Federal Jurisdiction In Water Damage Coverage Dispute

    EL PASO, Texas —  A Texas federal magistrate judge found that a claim brought against an adjuster in a case alleging breach of contract, bad faith and violations of Texas insurance law over an insurer’s coverage for water damages to an El Paso apartment complex is “insufficient” to defeat diversity jurisdiction and recommended dismissing the adjuster as a defendant and denying a motion to remand.

  • May 11, 2026

    Texas High Court: No Basis To Prohibit Appraisal In Flood Coverage Dispute

    AUSTIN, Texas — The Texas Supreme Court on May 8 conditionally granted mandamus relief to relator insurers, holding that a lower court abused its discretion in denying the insurers’ motion to compel appraisal of their insureds’ flood damage loss to a food distribution warehouse because the record amply establishes that the parties’ disagreement is at least partly about the insureds’ amount of loss.

  • May 01, 2026

    Split Texas Panel Denies Mandamus Petition Seeking To Toss Qui Tam Fraud Suit

    AUSTIN, Texas — A split Texas appellate court on April 30 denied a petition for writ of mandamus by Novartis Pharmaceuticals Corp. seeking dismissal of a qui tam suit brought by Health Selection Group LLC (HSG) alleging fraud under the Texas Medicaid Fraud Prevention Act, finding that “the costs of discovery and the litigation process that the parties will endure are insufficient in this instance to demonstrate a lack of an adequate remedy by appeal.”