Republic Insurance Company and Southwest Adjusting Services, Inc., Petitioners v. Linda H. Stoker and John Stoker…

Summary

The Texas Supreme Court reversed the Court of Appeals, holding that an insurer is not liable for a bad‑faith claim when the underlying insurance claim is not covered, even if the insurer denied the claim for an invalid reason, because no reasonable basis for denial existed under the facts. Justice Doggett authored a concurring opinion disagreeing with the majority’s view that bad‑faith recovery depends on a breach of the insurance contract.