Texas Supreme Court
State Farm Lloyds, Petitioner v. Ioan and Liana Nicolau, Respondents
October 2, 1997951 S.W.2d 444
Summary
The Texas Supreme Court held that there is sufficient evidence to support the jury's finding of bad‑faith liability against State Farm Lloyds, but reversed the jury's finding of malice and held that the insurer's conduct did not rise to the level required for exemplary damages. The Court affirmed the breach‑of‑contract judgment and remanded for further consideration of statutory damages under the DTPA. Justice Hecht dissented, arguing that the bad‑faith tort is undefined and should not be applied.