Insureds’ Breach Of Contract, Bad Faith Claims Not Actionable, Judge Rules

Mealey's (June 22, 2016, 3:01 PM EDT) -- McALLEN, Texas — An insurer’s prompt payment of an appraisal award in a homeowners insurance dispute estops the insureds from bringing a claim for breach of contract, and as a result, their extracontractual claims are inactionable under Texas law, a federal judge in Texas ruled June 20 (Daniel Gutierrez, et al. v. State Farm Lloyds, et al., No. 14-430, S.D. Texas; 2016 U.S. Dist. LEXIS 79665).

(Opinion available. Document #07-160627-018Z.)

Daniel and Aurora Gutierrez purchased a homeowners insurance policy from State Farm Lloyds and filed a...
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