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 held that APIE fulfilled its duty to defend Dr. Garcia and did not breach its Stowers duty to settle because it never received a settlement demand within policy limits; it also rejected the stacking of multiple policies and found no violation of Texas Insurance Code art. 21.21. Justice Hightower dissented, arguing that APIE should be liable for failing to make reasonable settlement efforts.