Ruben and Anita Hernandez, Petitioners v. Gulf Group Lloyds, Respondent

Summary

The Texas Supreme Court held that an insurer may not invoke a settlement‑without‑consent exclusion to deny an uninsured/underinsured motorist claim unless the insurer is actually prejudiced by the insured’s settlement; because Gulf was not prejudiced, the Court reversed the Court of Appeals and affirmed the trial court’s judgment for the Hernandezes. Justice ENOCH dissented, arguing the case is about coverage and would have affirmed the appellate decision.