Texas Supreme Court

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

September 8, 1994881 S.W.2d 312

Summary

The Texas Supreme Court reversed the Court of Appeals, holding that there is no evidence Texas Farmers Insurance was negligent under the Stowers duty nor that it breached a duty of good faith and fair dealing in handling the Medinas’ claims, and entered judgment that Soriano take nothing. Justice Cornyn, in a concurrence, noted the issue of a third‑party good‑faith duty remains open, and Justice Hightower, also concurring, disagreed with the majority’s analysis of the insurer’s duty to settle.