Today, the Texas Supreme Court reversed itself in the case of Excess Underwriter's v Frank's Casing.  The court originally issued an opinion in May 2005.  After much uproar from all sides, the court granted a motion for rehearing in January 2006, and held oral argument two years ago this month. 

I don't have time for details, but the case involves a situation when a liability insurance company disputes coverage but still chooses to settle the litigation. In the original opinion, the court held that the insurer, after settling the case, could go back and require the insured to go back and reimburse the insurer for any settlement amount if it is ultimately determined that no coverage exists.  This put insureds at peril, even after the underlying cases were settled.  Today the Supreme Court did an about face.

For a detailed look at the opinion and links to the prior opinions and others, please check out Todd Smith's Texas Appellate Law Blog.

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