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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

Universe Life Insurance v. Giles

Justice Hecht's concurring opinion addresses the complex issues surrounding insurance bad-faith liability in Texas. He critiques the existing 'no reasonable basis' standard for its difficulty in appellate review, particularly due to the limitations of no-evidence review which prevents weighing conflicting evidence. He advocates for defining bad faith as 'unscrupulous, arbitrary conduct' and for treating the 'reasonably clear' liability standard as a legal question rather than a factual one. This approach, he argues, would provide clearer guidelines for insurers and enable meaningful judicial review, preventing juries from arbitrarily defining bad faith. Furthermore, he emphasizes that the requisite mental state for bad-faith liability should involve intentional or reckless conduct, not mere negligence. He concurs with the judgment that Universe Life wrongfully delayed Giles' claim (thus implying the claim for benefits was granted) but finds no evidence for punitive damages.

Insurance bad faithTexas lawtort liabilitycontractual disputesappellate reviewevidentiary standardsjudicial roleinsurer conductdamagespunitive damages
References
152
Case No. 2021 NY Slip Op 01050 [191 AD3d 884]
Regular Panel Decision
Feb 17, 2021

Matter of Faith A. M. (Faith M.)

The mother, Faith M., appealed an order from the Family Court, Kings County, which found her to have derivatively neglected her child, Faith A.M. This finding stemmed from a prior neglect determination in May 2014 concerning her other children due to excessive corporal punishment, which the court deemed proximate in time to the current proceeding. The evidence presented, including statements from siblings, testimony from a school counselor, and observations of injuries, corroborated the ongoing use of excessive corporal punishment. The Family Court's assessment of the mother's credibility, finding her denials incredible, was supported by the record, reinforced by her guilty plea to disorderly conduct related to similar allegations. The Appellate Division affirmed the Family Court's order, as the mother failed to provide evidence that the circumstances leading to the neglect finding no longer existed.

Child NeglectDerivative NeglectCorporal PunishmentFamily Court ActAppellate ReviewParental JudgmentPreponderance of EvidenceCredibilityPrior FindingsRisk of Harm
References
11
Case No. 02 Civ. 3288(DLC), 03 Civ. 0167, 03 Civ. 0168, 03 Civ. 0169, 03 Civ. 0170, 03 Civ. 0171, 03 Civ. 0337, 03 Civ. 0890, 03 Civ. 0891, 03 Civ. 0892, 03 Civ. 1283, 03 Civ. 1284, 03 Civ. 2839, 03 Civ. 3859, 03 Civ. 3860, 03 Civ. 4499, 03 Civ. 4500, 03 Civ. 6226, 03 Civ. 6227, 03 Civ. 6592, 03 Civ. 7297, 03 Civ. 7806, 03 Civ. 8269, 03 Civ. 8270, 03 Civ. 8271, 03 Civ. 8923, 03 Civ. 8924, 03 Civ. 9168, 03 Civ. 9400, 03 Civ. 9401, 03 Civ. 9402, 03 Civ. 9823, 03 Civ. 9824
Regular Panel Decision
Jan 20, 2004

In Re Worldcom, Inc. Securities Litigation

This case addresses motions for reconsideration and dismissal in a multi-district litigation stemming from the WorldCom, Inc. financial collapse. The court affirmed that Section 13 of the Securities Act, not the Sarbanes-Oxley Act's Section 804, dictates the statute of limitations for Section 11 and 12(a)(2) claims, as these actions were deliberately pleaded as strict liability/negligence rather than fraud. It also held that the 'American Pipe' tolling doctrine does not apply to individual actions filed independently before class certification, leading to many time-barred claims. Furthermore, the court upheld the dismissal of a Section 12(a)(2) claim regarding a December 2000 private placement, affirming that such placements fall outside the scope of Section 12(a)(2). Requests for leave to amend complaints were largely denied due to lack of diligence and bad faith in strategic pleading.

Securities LitigationClass ActionStatute of LimitationsSarbanes-Oxley ActSecurities Act of 1933American Pipe Tolling DoctrineRule 15(c) Relation-BackPrivate PlacementMotion to DismissMotion for Reconsideration
References
56
Case No. MISSING
Regular Panel Decision

Maryland Insurance Co. v. Head Industrial Coatings & Services, Inc.

This is an appeal in a bad faith insurance case involving Head Industrial Coatings and Services, Inc. (Head) and Maryland Insurance Company (Maryland). Head sued Maryland for denying a contractual liability claim, which was missing from its policy due to an agent's clerical error. The appellate court upheld the cause of action for bad faith, ruling that the agent's knowledge was imputable to Maryland, making the conduct knowingly wrongful. However, the court reduced Head's damage award to policy limits and reversed a statutory penalty. The case also involves a third-party action by Maryland against Gans & Smith Insurance Agency, which was remanded for a new trial due to issues with the jury's finding on breach of fiduciary duty.

Bad Faith InsuranceInsurance Code ViolationsContractual LiabilityAgent ErrorClerical ErrorIndemnity AgreementUnfair Claims Settlement PracticesDuty of Good Faith and Fair DealingImputed KnowledgeDamages Calculation
References
59
Case No. MISSING
Regular Panel Decision

Rangel v. Hartford Accident & Indemnity Co.

Lorenzo Rangel appealed a summary judgment granted in favor of Hartford Accident & Indemnity Company regarding his bad faith claim. Rangel alleged Hartford delayed workers' compensation payments following a job-related accident in May 1988, with payments ceasing in October 1988 and resuming in February 1989 after an Industrial Accident Board (IAB) conference. The underlying compensation claim was settled for $29,000, and the Compromise Settlement Agreement (CSA), approved by the IAB, noted that the carrier's liability or extent of injury was uncertain. Hartford successfully moved for summary judgment based on collateral estoppel, arguing Rangel was precluded from relitigating the issue of uncertainty. The appellate court affirmed the summary judgment, concluding that the IAB's finding of uncertainty of liability provided a reasonable basis for Hartford's delay in payments, thus defeating Rangel's bad faith claim.

Workers' CompensationBad Faith ClaimDelay in PaymentSummary JudgmentCollateral EstoppelIssue PreclusionCompromise Settlement AgreementTexas Industrial Accident BoardReasonable Basis for DelayUncertainty of Liability
References
12
Case No. 05-20-00859-CV
Regular Panel Decision
Aug 11, 2022

Full of Faith Christian Center, Inc., Full of Faith Christian Center Ministries, Full of Faith Christian Center Ministries, Inc., Calvin Ray Calhoun, and Peggy Calhoun v. Kenneth May & Desire Ophelia Fuentes-May

Kenneth May and Desire Ophelia Fuentes-May (Appellees) sued Full of Faith Christian Center, Inc. and related entities/individuals (Appellants) for nuisance, trespass, negligence, and unlawful diversion of water. A no-answer default judgment was entered against Appellants. Appellants challenged the default judgment, raising issues with citation, substituted service, and an unserved supplemental petition, among others. The appellate court found service and citation were not defective and upheld the denial of the motion for new trial on most grounds. However, the court reversed the award of punitive damages against appellants jointly and severally, remanding for a new trial solely on exemplary damages, and affirmed the trial court's judgment in all other respects.

Default JudgmentService of ProcessSubstituted ServicePunitive DamagesJoint and Several LiabilityMotion for New TrialAppellate ReviewTexas Civil ProcedureNuisanceTrespass
References
33
Case No. MISSING
Regular Panel Decision

Sanchez v. New York Underwriters Insurance Co.

Raul Sanchez, an injured employee, appealed the trial court's summary judgment granted to New York Underwriters Insurance Company (NYUIC) and David Sampson. Sanchez had previously won a worker's compensation claim but NYUIC discontinued disability payments during subsequent litigation, leading to Sanchez's bad faith claim. The trial court initially granted summary judgment, ruling no duty of good faith existed post-litigation. The appellate court reversed and remanded, holding that worker's compensation carriers indeed have a duty of good faith and fair dealing that extends through post-litigation proceedings, citing Aranda v. Insurance Co. of North America.

worker's compensationbad faithduty of good faith and fair dealingsummary judgmentpost-litigationinsurance carrierTexas lawappellate reviewreversalremand
References
2
Case No. MISSING
Regular Panel Decision

Beer v. John Hancock Life Insurance

Plaintiff Yoram Beer sued various insurance companies to recover disability and life insurance benefits after suffering a heart attack, claiming total disability. Defendants denied the claims, leading to the plaintiff initiating litigation. The plaintiff later moved to dismiss the entire action with prejudice and without costs, while the defendants cross-moved for attorneys' fees, alleging the plaintiff's litigation was commenced in bad faith, and sought costs. The court granted the plaintiff's motion for dismissal with prejudice, reasoning that such a dismissal freed defendants from relitigation without causing them prejudice. It denied the defendants' request for attorneys' fees, finding insufficient evidence of bad faith or a meritless claim, but allowed them to seek allowable costs, excluding those related to a prior stipulated dismissal.

Voluntary DismissalDismissal with PrejudiceAttorneys' FeesCostsBad Faith LitigationRule 41(a)(2) MotionRule 54(d) CostsPrevailing PartyDisability Insurance BenefitsLife Insurance Policy
References
13
Case No. MISSING
Regular Panel Decision
Apr 26, 2016

The Matter of New York City Asbestos Litigation , Doris Kay Dummitt v. A.W. Chesterton , The Matter of Eighth Judicial District Asbestos Litigation , Joann H. Suttner v. A.W. Chesterton Company

This New York Court of Appeals opinion addresses the scope of a manufacturer's duty to warn regarding dangers arising from the use of its product in combination with a third-party product. The Court held that such a duty exists when the third-party product is necessary for the manufacturer's product to function as intended, whether due to design, mechanics, or economic necessity, and the danger is known and foreseeable. Applying this rule, the Court affirmed judgments against Crane Co. in two separate asbestos litigations, finding that Crane had a duty to warn users of its valves about asbestos exposure from third-party sealing components. The decision clarified the balance of risks and costs in products liability law.

Product LiabilityFailure to WarnAsbestos ExposureMesotheliomaManufacturer DutyCombined Product UseForeseeability of HarmEconomic NecessityComponent Parts DoctrineStrict Liability
References
91
Case No. MISSING
Regular Panel Decision

Jackson v. City of Galveston

Justice Sears dissents from the majority's decision, arguing that a self-insured municipality like the City of Galveston should not be shielded by sovereign immunity from tort liability for bad faith in processing workers' compensation claims. He asserts that when a city opts to self-insure, it acts in a proprietary capacity and, under the 'dual capacity' doctrine, should be held to the same standards of good faith and fair dealing as private insurers. Sears highlights that denying injured public servants, such as Robert Jackson, the ability to litigate bad faith claims creates an unfair disparity compared to private sector employees, especially given the exclusive control insurers exercise over claims processing. Therefore, he advocates for reversing the trial court's judgment to allow Mr. Jackson to pursue his claim, applying a doctrine that aligns with public policy for equal protection.

Workers' CompensationSovereign ImmunityBad Faith ClaimSelf-Insured MunicipalityTort LiabilityDual Capacity DoctrineGood Faith and Fair DealingPublic ServantsProprietary FunctionGovernmental Function
References
2
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