TX Supreme Court Clarifies: Breach of Contract Not Required to Prevail on Statutory Bad Faith Claim

The Supreme Court of Texas recently clarified that under certain circumstances, an insured can recover policy benefits as damages for bad faith even absent a finding that the insurer was in breach of contract.  In USAA Texas Lloyds Company v. Menchaca, the court explored decades’ worth of Texas precedent and distilled it into five simple rules that govern claims of this nature.  This case is an invaluable resource for policyholders contemplating a bad faith claim, particularly those involving unusual or potentially confusing circumstances.

Click here to read the full case alert.






Jun 04, 2018
Bethany L. Barrese