Texas Court Affirms Take-Nothing Judgment in Favor of State Farm

HOUSTON - A Texas appellate court majority has affirmed summary judgment in favor of an insurer that paid homeowners $137,000 under a reservation of rights but cited the homeowners' policy's mold exclusion in rejecting supplemental claims. Justice v. State Farm Lloyds Insurance Co., et al., No. 14-06-00248-CV (Texas 14th Ct. App.).

The 14th Court of Appeals panel, with one justice writing a concurring opinion, ruled Jan. 15 that State Farm's Adjusters Guide provided no basis for the policyholders' breach-of-contract claim and that there was no legal basis for a negligence claim based on State Farm's claims handling practices.

Larry …