In re State Farm Mut. Auto. Ins. Co., 614 S.W.3d 316 (Tex. App.- Fort Worth 2020, orig. proceeding)

In re State Farm Mut. Auto. Ins. Co., 614 S.W.3d 316 (Tex. App.- Fort Worth 2020, orig. proceeding)

Denial of State Farm’s mandamus petition seeking to avoid discovery in the uninsured/underinsured motorist context.  In doing so, the court of appeals discusses at length the distinction between a breach of contract claim against the UM/UIM insurer and common law or statutory claims for breach of duties of good faith and fair dealing.  Noting a distinction based on the historical development of the claims and their accrual, the court of appeals found that Brainard does not foreclose such claims.  Rather, another line of cases, beginning with the Texas Supreme Court’s opinion in Arnold (and modified later by Murray), which hold that the insurer’s duties of good faith and fair dealing can accrue prior to a judgment that would trigger the insurer’s contractual liability, controls and allows such claims, and supported the trial court’s order compelling discovery related to the insurer’s claims-handling practices.

Kirk L. Pittard, Partner