Great American Reserve Insurance Company, Petitioner v. Kathleen E. Britton, Respondent

Summary

The Texas Supreme Court affirmed the judgment awarding the policy proceeds, statutory penalty and costs to the widow, but reversed the award of $4,000 in attorney fees and remanded that issue for a new trial. The Court held that the insurer failed to meet its burden of proving the insured was not in good health at delivery, and that the statutory demand prerequisite for attorney fees is waived when the insurer initiates a cancellation suit. Justice Norvell’s dissent argued that the medical evidence conclusively showed the insured was not in good health and that the judgment should be reversed in favor of the insurer.