Texas Supreme Court

Grapevine Excavation, Inc., Appellant v. Maryland Lloyds, a Lloyds Insurance Company, Appellee

January 18, 200135 S.W.3d 1

Summary

The Texas Supreme Court answered a certified question from the Fifth Circuit, holding that an insurer subject to the provisions of section 38.006 of the Texas Civil Practice and Remedies Code is liable for reasonable attorney's fees in a policyholder's successful breach‑of‑contract action unless the insurer is liable for fees under another statutory scheme. The Court relied on two decades of Texas appellate precedent interpreting the statute narrowly and applied the legislative‑acceptance doctrine and stare decisis. A dissent argued the plain language mandates exemption and would answer the question no, while a concurrence agreed with the result but emphasized the weight of precedent.