William J. Viles and Mary R. Viles, Petitioners v. Security National Insurance Company, Trinity Universal Insurance…

Summary

The Texas Supreme Court reversed the Court of Appeals and held that a failure to file a timely proof of loss does not bar a claim for breach of the duty of good faith and fair dealing, because the insurers denied the claim before the deadline, thereby waiving the requirement. The Court also affirmed that a breach of the duty of good faith and fair dealing is a separate tort action from breach of the insurance contract. Justice Hecht, in a concurring opinion, agreed with the result but criticized the majority’s broader reasoning.