Texas Farmers Insurance Company, Petitioner v. Richard R. Soriano and Auforth, Keas & O’reilly, Respondents

Summary

The Texas Supreme Court held that Texas Farmers Insurance Company was neither negligent nor in breach of a duty of good faith and fair dealing in handling the third‑party claims against its insured, Richard Soriano, and therefore reversed the Court of Appeals and entered judgment that Soriano receive nothing. The Court reaffirmed the Stowers duty as the exclusive tort remedy for insurers and declined to recognize a separate good‑faith duty in third‑party contexts. Two concurring opinions agreed with the judgment but differed on the analysis of the insurer's duty to settle.