Melvin L. Vail, Petitioners v. Texas Farm Bureau Mutual Insurance Company, Respondent

Summary

The Texas Supreme Court held that the Vails stated a cause of action for unfair claims settlement practices under the Deceptive Trade Practices Act and the Texas Insurance Code and were entitled to treble damages equal to the policy amount, attorney's fees, and prejudgment interest limited to the policy amount. The Court also ruled that prejudgment interest may not be awarded on the trebled damages. Two dissenting opinions argued that no private cause of action exists and would have affirmed the Court of Appeals.