Mealey's Texas Insurance

  • August 17, 2026

    Judge OKs Recommendation Granting Insurer Judgment In Texas Lab Coverage Suit

    SHERMAN, Texas — A federal judge in Texas on Aug. 14 rejected an objection from an infectious disease lab testing company and adopted a magistrate judge’s report and recommendation granting the lab’s insurer’s motion for judgment on the pleadings in a dispute over defense coverage for regulatory claims.

  • August 17, 2026

    Texas Panel Modifies Hail-Damage Award Pursuant To Insurance Law Provision

    FORT WORTH, Texas — A Second District Texas Court of Appeals panel held that a trial court judge was wrong to reduce a jury’s damages award to a couple who brought bad faith and Texas insurance law claims against their homeowners insurer for refusing to cover the cost of replacing an allegedly hail-damaged roof of their home.  The panel opted, though, to modify the award to $14,500 instead of granting the jury’s full damages award or remanding the case based on a rejected settlement offer and a provision of the state insurance code.

  • August 17, 2026

    Fact Issues Preclude Summary Judgment On Breach, Bad Faith, DTPA Claims, Judge Says

    HOUSTON — Claims alleging breach of contract, bad faith and violation of the Texas Deceptive Trade Practices Act (DTPA) can proceed against an auto insurer because questions of fact exist as to whether the insured’s wife was married to him at the time of an auto accident and whether she lived with the insured at the time of the accident, a Texas federal judge said in partially denying the insurer’s motion for summary judgment.

  • August 14, 2026

    Health Insurance Breach Of Contract Suit Survives Dismissal In Texas Federal Court

    BEAUMONT, Texas — A federal judge in Texas ruled in denying a motion to dismiss that a man who sued his health insurer for allegedly denying and underpaying claims associated with significant medical conditions pleaded enough facts to state a plausible breach of contract claim while also holding that the insurer’s primary argument was merits-based and not appropriate for a dismissal motion.

  • August 12, 2026

    Plastics Manufacturer Seeks Full Vacatur Of IRS Rule In Appellant Brief

    NEW ORLEANS — Writing that the Fifth Circuit U.S. Court of Appeals “should finish the job” by vacating the entirety of an IRS final rule that a lower court partially invalidated, a plastics manufacturer argues in its appellant brief that the remaining portion of the rule is unlawful on the basis that its “building blocks” lack administrative record support.

  • August 10, 2026

    5th Circuit: Judge’s Order In Builder’s Indemnification Suit Lacks Explanation

    NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel remanded for further explanation a federal judge in Texas’ grant of summary judgment in favor of an insurer in a builder’s suit seeking indemnification for an arbitration award for damages caused by construction defects in a home the builder built, finding that the judge had not provided a sufficient explanation for the basis of his ruling.

  • August 07, 2026

    Texas Federal Judge Begrudgingly Grants Appraisal In 3-Year-Old Storm Coverage Suit

    DALLAS — While recognizing that the decision “gives the court pause” because of the “extraordinary delay” in the filing, a federal judge in Texas granted an insurer’s motion to compel appraisal in an ongoing, three-year-old lawsuit alleging breach of contract, bad faith and state insurance law claims in a dispute over whether damage to the roofs of two commercial buildings was caused by a 2021 hailstorm.

  • August 05, 2026

    Breach Of Contract Claim Nixed, Others Survive In Texas Federal UIM/PIP Case

    SAN ANTONIO — Adopting a magistrate judge’s report and recommendation on cross-motions for summary judgment, a federal judge in Texas dismissed a breach of contract claim but left other noncontractual claims pending in a man’s lawsuit alleging that his insurer failed to pay personal injury protection (PIP) and uninsured motorist/underinsured motorist (UM/UIM) benefits after he was struck by a vehicle.

  • August 04, 2026

    Texas Panel Affirms Take-Nothing Judgment In Coverage Suit Over Gas Spill

    DALLAS — A Texas appeals court held that a lower court correctly granted a take-nothing judgment in favor of insurers in an insured’s breach of contract lawsuit seeking full coverage for its losses arising from a pipe rupture that caused a hydrogen chloride gas spill at its facility, holding that the insurers established the corrosion exclusion applied and the insured failed to raise a fact issue demonstrating that it suffered damages in excess of the policies’ deductible stemming from covered events that were segregated from the excluded damages.

  • August 03, 2026

    Insurers Want Insured’s Dismissal Of Wind, Hail Damage Suit To Be With Prejudice

    DALLAS — One of three insurers in a federal lawsuit filed by a commercial building owner alleging inadequate payment for wind and hail damages on July 31 joined the two other insurers in a response opposing the voluntary dismissal without prejudice of the case’s remaining breach of contract and Texas insurance law claims, instead requesting that the claims be dismissed with prejudice.

  • July 30, 2026

    Judge OKs Voluntary Dismissal In Wind, Hail Damage Suit Against Trio Of Insurers

    DALLAS — After dismissing Texas insurance law claims against two of three insurers in a lawsuit filed by a commercial building owner alleging inadequate payment for wind and hail damages, a federal judge granted the owner’s motion to voluntarily dismiss the rest of the case without prejudice until the plaintiff is able to participate in the litigation.

  • July 30, 2026

    Retail Center's Breach Of Contract Suit Against Insurer Dismissed As Untimely

    SHERMAN, Texas — A Texas federal judge dismissed a lawsuit filed by the owner and operator of a retail center against its insurer, finding that the insured “failed to file” its suit alleging breach of contract for delaying the appointment of an attorney to defend it against an injury liability suit “within the required time period" of two years and one day, as contractually agreed upon by the parties.

  • July 27, 2026

    Texas Couple, Insurer Settle Remaining Claims In Hail Damage Coverage Suit

    AUSTIN, Texas — A Travis County, Texas, couple and their property insurer have agreed to settle bad faith and breach of contract claims that remain in a federal lawsuit filed by the couple following a dispute over coverage for damage to a metal roof allegedly sustained during a hailstorm.

  • July 20, 2026

    Bad Faith Claims Against Property Insurer Fail In Roof Damage Suit, Judge Says

    DALLAS — An insured’s common-law and statutory bad faith claims against a property insurer cannot proceed because the insurer’s denial of coverage for damage to the insured’s roof was not unreasonable, a Texas federal judge said in partially granting the insurer’s motion for summary judgment.

  • July 16, 2026

    School District’s Hail Damage Suit Against Reinsurer Dismissed

    PECOS, Texas — A Texas federal judge dismissed without prejudice for lack of subject matter jurisdiction a school district’s action against a reinsurer seeking more than $19 million for alleged underpayment of hail-damage benefits, finding that an interlocal self-insurance alliance issued the policy and that the district had no direct contractual or extracontractual right of action against the reinsurer.

  • July 14, 2026

    Magistrate Judge Recommends Denial Of Contract Claim, Not Others, Against Insurer

    SAN ANTONIO — In a report and recommendation on cross-motions for summary judgment, a federal magistrate judge in Texas recommended dismissal of a breach of contract claim made by a man who sued his insurer for allegedly failing to pay personal injury protection (PIP) and uninsured motorist/underinsured motorist (UM/UIM) benefits after he was struck by a vehicle but recommended that other noncontractual claims remain pending because the insurer did not address them in its motion.

  • July 13, 2026

    Dog Training Company’s Storm Damage Coverage Suit To Remain In Federal Court

    SAN ANTONIO — A federal judge in Texas denied a specialized dog training company’s motion to remand to state court a lawsuit filed against its commercial insurance broker alleging breach of contract, negligence and state insurance law violations over failure to procure coverage for storm damage to kennels and carports, finding that two individual defendants added to the suit were improperly joined and thus should be dismissed from the litigation without prejudice.

  • July 08, 2026

    Claims Against Property Insurer In Water Damage Suit Dismissed With Prejudice

    DALLAS — A Texas federal judge granted summary judgment in favor of a property insurer after determining that the insured failed to show that coverage is owed for water damage in his home and failed to show that the insurer’s denial of coverage was not reasonable.

  • July 07, 2026

    Judgment Dismissing Claims Brought By Third Party In Collision Coverage Suit Stands

    DALLAS — A federal judge in Texas denied a motion to alter or amend a judgment dismissing claims for promissory estoppel, bad faith and violations of the Texas Deceptive Trade Practices Act (DTPA) filed by a third-party claimant against the insurer of another vehicle involved in a multivehicle collision.

  • July 02, 2026

    More Arguments Made For, Against Summary Judgment Denial In UIM Benefits Dispute

    HOUSTON — An insurer seeking reconsideration or certification of interlocutory appeal of a Texas federal judge’s denial of a summary judgment motion against the insured’s counterclaim in a years-long motor vehicle collision coverage dispute issued a reply with two new arguments to the insured’s response claiming that the insurer rehashed rejected arguments and is not entitled to appeal.

  • July 02, 2026

    Texas Panel Partly OKs Insurer’s Appraisal, Abatement Petition In Storm Damage Suit

    CORPUS CHRISTI, Texas — A Texas appellate panel, in partially granting a petition for writ of mandamus to an insurer sued by a Cameron County woman for denying coverage and failing to pay for storm damage to her property, held that a trial court abused its discretion by refusing to compel appraisal but denied mandamus relief regarding abatement of the lawsuit pending appraisal.

  • June 26, 2026

    Tax Firm Says Related Ruling Doesn’t Support IRS Microcaptive Directive

    DALLAS — A tax firm told a Texas federal judge that a related Southern District of Texas ruling should not guide the court’s review of its Administrative Procedure Act (APA) challenge to the IRS’s final microcaptive insurance disclosure rule, arguing that although the ruling correctly vacated the rule’s listed-transaction designation, it failed to address defects in the rule’s loss-ratio thresholds, related-party financing criteria and factual support for the transaction-of-interest designation.

  • 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.