Texas Supreme Court
American Physicians Insurance Exchange and American Physicians Service Group, Inc., Petitioners v. Ramon A. Garcia…
June 8, 1994876 S.W.2d 842
Summary
The Texas Supreme Court reversed the Court of Appeals, holding that American Physicians Insurance Exchange (APIE) fulfilled its duty to defend Dr. Ramon Garcia and did not breach its Stowers duty to settle because it never received a settlement demand within its policy limits. Justice Hightower, dissenting, argued that APIE should be liable for failing to make reasonable settlement efforts.