Magistrate Recommends Partial Dismissal In Bad Faith Insurance Coverage Action

Mealey's (January 7, 2022, 8:35 AM EST) -- GALVESTON, Texas — A Texas federal magistrate judge on Dec. 21 recommended granting in part and denying in part an insurer’s motion for judgment on the pleadings in a breach of contract, breach of duty of good faith and fair dealing and Texas Insurance Code violations suit filed by a contractor seeking coverage for state court claims against it related to alleged defective condominium repairs, finding that Texas law provides no duty of good faith and fair dealing in third-party claims and that it is “premature” to dismiss the alleged Texas Code violation related to reasonable claim investigation....