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

Summary

The Texas Supreme Court held that the Vails properly pleaded and proved a cause of action for unfair claims settlement practices under the Deceptive Trade Practices Act and the Texas Insurance Code, entitling them to treble damages (but not prejudgment interest on the trebled amount) and affirmed that an insurer's refusal to pay a valid claim causes damages at least equal to the policy amount. The Court reversed the appellate court's limitation of damages and issued a judgment for treble damages, prejudgment interest on the policy amount only, and attorney's fees, while noting dissenting opinions contesting the majority's statutory interpretation.