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Mealey's Texas Insurance

  • February 06, 2026

    Owner Of Storm-Damaged Texas Buildings Files Complaint Alleging Insurer Underpaid

    DALLAS — The owner of Texas commercial buildings that were damaged during a 2024 winter storm sued its commercial property insurer in a state court alleging breach of contract and violations of the Texas Deceptive Trade Practices Act (DTPA) for “significantly” underpaying its damages claim “based on the insufficient inspection with the intention of minimizing its liability.”

  • February 05, 2026

    Property Insurer Must Produce Files Related To Insured’s Damage Claim, Judge Says

    DALLAS — A commercial property insurer is required to produce underwriting and personnel files related to an insured’s storm damage claim because the files are applicable to the insured’s claim, a Texas federal magistrate judge said in partially granting the insured’s motion to compel.

  • February 05, 2026

    Texas Federal Judge Grants Commercial Auto Insurer’s Motion For Default Judgment

    MIDLAND, Texas — A Texas federal judge adopted a magistrate judge’s recommendation to grant a commercial auto insurer’s motion for default judgment, agreeing with the magistrate judge that default judgment is warranted because none of the defendants named in the lawsuit filed any responsive pleadings or made an appearance in the case.

  • February 05, 2026

    Suit Against Auto Insurer Must Be Remanded For Untimely Removal, Federal Judge Says

    FORT WORTH, Texas — A suit filed by insureds against an auto insurer seeking a declaration that coverage is owed for uninsured motorist benefits must be remanded to state court because the auto insurer’s notice of removal was not filed within a year of the insureds filing suit, a Texas federal judge said.

  • February 05, 2026

    Insured Files Appeal, Says Coverage Owed Under Professional Liability Policy

    EL PASO, Texas — A trial court erred in granting summary judgment in favor of a professional liability insurer because an underlying suit filed against an insured attorney contains potentially covered claims, the insured says in an appellant brief filed in the Eighth Texas Court of Appeals.

  • February 05, 2026

    Insured Granted Summary Judgment On Interpretation Of Policy’s ‘But For’ Term

    DALLAS — On remand from the Fifth Circuit U.S. Court of Appeals, a Texas federal judge partially granted a motion for summary judgment filed by Southwest Airlines Co. in a dispute over excess coverage for income losses sustained by the airline as a result of a computer system failure in 2016, agreeing with a magistrate judge’s conclusion that the term “but for” as used in the excess policy’s definition of loss must be interpreted as meaning “except for.”

  • February 04, 2026

    Storm Damage Coverage Suit Dismissed Following Settlement Of Insured’s Claims

    WACO, Texas — A Texas federal judge granted a joint stipulation of dismissal in a storm damage coverage suit and dismissed the insured’s claims against a homeowners insurer with prejudice after the parties reached an undisclosed settlement.

  • February 04, 2026

    Judge Refuses To Dismiss BSA Settlement Trustee’s Bad Faith Suit Against Insurers

    DALLAS — A federal judge in Texas denied insurers’ motion to dismiss the trustee of the Boy Scouts of America Settlement Trust’s bad faith lawsuit seeking a declaration that the insurers have breached or will breach their insurance policies by refusing to provide coverage for sexual abuse claims, rejecting the insurers’ argument that the lawsuit should be dismissed on forum non conveniens grounds or stayed under the Colorado River abstention doctrine.

  • February 04, 2026

    IRS Maintains That Captive Final Rule Was Based On Data And Prior Litigation

    DALLAS — Stating that “micro-captives can and have been used repeatedly for tax avoidance,” the Internal Revenue Service moved for summary judgment in a tax firm’s challenge to a final rule on microcaptive insurance arrangements, asserting that the factors used in identifying potential avoidance schemes were based on data and prior litigation and that the tax firm conflates disclosure requirements with disallowance.

  • February 03, 2026

    Insurer Says Pollution Exclusion Bars Coverage For Carbon Monoxide Poisoning Suit

    EL PASO, Texas — A commercial general liability insurer filed suit in Texas federal court, seeking a declaration that it does not have any duty to defend or indemnify its insureds in an underlying suit stemming from carbon monoxide poisoning at an insured motel because the policy’s pollution exclusion bars coverage.

  • February 02, 2026

    5th Circuit Affirms Ruling In Favor Of Insurer In Bad Faith Coverage Dispute

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Jan. 30 affirmed a lower federal court’s grant of summary judgment in favor of an insurer in a breach of contract and bad faith lawsuit, holding that the insured failed to provide evidence suggesting hail occurred within the relevant policy period and, as a result, did not establish a genuine dispute of material fact regarding whether covered damage occurred.

  • January 30, 2026

    Texas Panel Dismisses Pro Se Insured’s Appeal In Suit Over Hail, Wind Damage

    EDINBURG, Texas — After a pro se insured moved to dismiss his appeal, noting that the controversy had settled, a Texas appeals panel dismissed the appeal in the insured’s lawsuit that was on remand from the Texas Supreme Court and sought damages for the Texas Windstorm Insurance Association’s alleged improper denial of coverage for hail and windstorm damage to his beachfront condominium that was caused by Hurricane Harvey and a subsequent storm, ending.

  • January 29, 2026

    Breach Of Contract Claim Proceeds In Storm Damage Coverage Suit, Judge Says

    HOUSTON — A breach of contract claim alleged against a property insurer by an insured seeking additional coverage for storm damage can proceed because a genuine issue of fact exists as to whether the storm caused all or only part of the property damage at issue, a Texas federal judge said in partially denying the insurer’s motion for summary judgment.

  • January 28, 2026

    Insured’s Suit Against Property Insurer Transferred To New York Court

    GALVESTON, Texas — An insured motel operator’s breach of contract complaint filed against its commercial property insurer must be transferred to New York federal court based on the forum selection clause included in the policy, a Texas federal magistrate judge said in granting the insurer’s motion to transfer.

  • January 28, 2026

    Magistrate Judge Recommends Adjuster Be Dismissed From Storm Damage Coverage Suit

    AUSTIN, Texas — A Texas federal magistrate judge recommended that an insurance adjuster named as a defendant by insureds who seek additional coverage under their homeowners policy for storm damage be dismissed because the insureds cannot assert a cause of action against the adjuster based on the insurer’s decision to accept liability for the adjuster.

  • January 23, 2026

    Magistrate Says Insurer’s Subrogation Claim Against Contractor Should Proceed

    AUSTIN, Texas — A federal magistrate judge in Texas recommended that a district court deny a construction company’s motion for judgment on the pleadings in a case its insurer brought against it seeking to recover attorney fees it paid in defending subcontractors in an arbitration regarding allegedly negligent hotel designs and construction, finding that the insurer exclusively paid defense cost claims.

  • January 20, 2026

    Homebuilder Argues Judge Wrong To Find No Coverage For Arbitration Award

    NEW ORLEANS — In its opening brief in the Fifth Circuit U.S. Court of Appeals, a homebuilder argues that a federal judge in Texas was wrong to grant summary judgment in favor of the builder’s commercial liability insurer in its suit seeking indemnification for an arbitration award for damages caused by construction defects in a home it built; it argues that the lower court abused its discretion in finding that no coverage existed under the policy.

  • January 14, 2026

    Trial Court Abused Discretion In Denying Motion To Bifurcate, Panel Says

    BEAUMONT, Texas — A Texas appellate court conditionally granted a petition for a writ of mandamus after determining that a trial court abused its discretion in denying an insurer and its adjuster’s motion to bifurcate a breach of contract claim from extracontractual claims to avoid prejudice to the insurer and adjuster and to preserve judicial resources.

  • January 13, 2026

    Evidence Supports Crop Insurance Claim Denial, 5th Circuit Rules

    NEW ORLEANS — Holding that a farmer failed to provide adequate evidence to demonstrate that denial of his crop insurance claim was arbitrary or capricious, a Fifth Circuit U.S. Court of Appeals panel affirmed a lower court ruling that federal regulators implemented proper standards and correctly considered expert testimony in concluding that the farmer failed to follow good farming practices (GFP) for coverage purposes.

  • January 09, 2026

    Insured’s Suit Barred By Suit Limitations Provision, Texas Panel Affirms

    DALLAS — An insured’s breach of contract suit against its insurer is barred by the policy’s two-year suit limitations provision because the insurer clearly denied coverage more than two years before the insured filed suit and did not later change its coverage decision, the Fifth District Texas Court of Appeals said.

  • January 09, 2026

    Diversity Of Citizenship Exists Between Insured, Builders Risk Insurer, Judge Says

    DALLAS — A builders risk insurer met its burden of showing that complete diversity of citizenship exists in a coverage dispute over costs incurred by an insured for construction delays, a Texas federal judge said in denying the insured’s motion to remand.

  • January 09, 2026

    Claimant’s Suit Against Tortfeasor’s Auto Insurer Fails, Texas Panel Affirms

    HOUSTON — A trial court properly dismissed a claimant’s suit against a tortfeasor’s auto insurer and the insurer’s agent because the claimant could not file suit against the tortfeasor’s insurer without first obtaining a judgment against the tortfeasor or settling with the tortfeasor.

  • January 08, 2026

    Tax Firm Moves For Summary Judgment In Bid To Vacate IRS Captive Final Rule

    DALLAS — A tax firm moved for summary judgment in a Texas federal court in its challenge to an Internal Revenue Service final rule on microcaptive insurance arrangements, arguing that the agency acted arbitrarily and capriciously by imposing reporting requirements without identifying facts or data showing that microcaptive transactions can potentially be done for tax avoidance or evasion.

  • January 08, 2026

    Prompted By Contractor’s Motion, 5th Circuit Dismisses Appeal In CGL Coverage Suit

    NEW ORLEANS — One day after a contractor insured filed an unopposed motion to dismiss its appeal of a Texas federal court’s opinion that a commercial general liability insurer has no duty to defend or indemnify for an underlying negligence lawsuit arising from the death of a house cleaner, the Fifth Circuit U.S. Court of Appeals dismissed the appeal.

  • January 08, 2026

    Breach Of Contract Claim To Proceed In Coverage Suit Over Home’s Destruction

    HOUSTON — A breach of contract claim against a homeowners insurer in a coverage dispute stemming from the destruction of an insured’s home can proceed because questions of fact exist regarding whether the insured resided in the home and whether the insured maintained an insurable interest in the home, which is located on a property included in a trust for her children, a Texas federal judge said in partially denying the insurer’s motion for summary judgment.