Colonial Savings Association, Petitioner v. Waymon Joel Taylor, Respondent

Summary

The Texas Supreme Court reversed the trial court and Court of Civil Appeals, holding that Colonial Savings Association voluntarily undertook to insure both structures on Taylor's property and therefore owed a duty of reasonable care. The Court found Colonial negligent in failing to obtain coverage for the smaller house, but remanded to determine whether Taylor relied on Colonial's undertaking, as reliance is a necessary element of liability. The Court also rejected the notion that Taylor's possession of the policy barred recovery because he did not read it.