In this eight-post series, we are examining the most common “Stowers myths” that sometimes confuse the practical application of an insurance company’s duty to behave in a reasonably prudent manner in responding to settlement demands.  If you are new to the series, you may want to start here, at the beginning, to learn more about the basic parameters of the Stowers doctrine.  MYTH #2  ▪   The settlement demand must be in writing to trigger the ...

When an insurance company fails to act reasonably in rejecting or failing to respond to a settlement demand, it may be subject to extra-contractual liability under the long-standing Stowers doctrine.  First articulated more than 80 years ago in G.A. Stowers Furniture Company v. American Indemnity Company, 15 S.W.2d 544 (Tex. Comm’n App. 1929), the common-law Stowers duty  applies when:  (1) the claim against the insured is within the scope of coverage; (2) the demand for sett ...

By Dana Harbin, Of Counsel Mediation is the most often used method of alternative dispute resolution. Courts order mediation in almost every case as a means of early resolution, which unquestionably benefits the judicial dockets, but when conducted appropriately, can be an effective tool in resolving even the most complex disputes. Given its popularity and success, many professionals make mediation their sole practice, schooling themselves in the art of negotiation and conflict resolution. However, not ...