Category: Alternative Dispute Resolution
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 ...
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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 ...
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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 ...
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