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Texas Federal Judge Says Question Of Fact Remains On Insured’s Refusal To Settle

Mealey's (October 3, 2016, 3:01 PM EDT) -- HOUSTON — Even though an insurer has shown that it was prejudiced as a matter of law by an insured’s conduct in declining a settlement in an underlying lawsuit over a faulty flex connector, a question of fact exists as to whether the insured’s refusal to settle was reasonable, a Texas federal judge said Sept. 29 in vacating a prior ruling on the issue (Mid-Continent Casualty Co. v. Petroleum Solutions, Inc., et al., No. 09-0422, S.D. Texas; 2016 U.S. Dist. LEXIS 133972).

(Amended opinion available. Document...
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