Texas Policyholder Who Paid Part of Settlement May Seek Recovery From Insurer

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A woman who chipped in $100,000 toward a settlement after a car crash can sue her insurer to seek recovery of that cost, but cannot seek damages in excess of the policy limits for negligent failure to settle because there was no final judgment in the case, the Texas Supreme Court ruled.

Plaintiff’s attorney Thomas G. Kemmy said during oral arguments that Texas’ high court has never before ruled on what recourse is available to a policyholder who faces the kind of dilemma that was imposed on his client Cassandra Longoria.

Farmers Texas County

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