Bad Faith Insurance Practices

Insurance is often designed to be sold, not bought. That basic principle is never more true than when an insurance company wrongfully refuses to cover policy holders for their loss. Texas law provides that insurance companies may be liable for bad faith when they violate the duty of good faith and fair dealing owed to policy holders. In particular, an insurance company may violate its duty of good faith and fair dealing by delaying and denying payment for damages despite actual or constructive knowledge that coverage for an insurance claim is reasonably clear. Policy holders may be entitled to recover exemplary damages and attorney’s fees for prosecuting bad faith insurance claims.

The Texas Insurance Code also prohibits deceptive insurance practices. If insurance companies do not attempt to bring about a prompt, fair, and equitable settlement of a claim despite reasonably clear liability or despite settlement demands within policy limits that would be acceptable to a reasonably prudent insurer, an insurance company may have violated the Texas Insurance Code. Insurance companies may also be liable for failure to conduct reasonable investigations or promulgating false and misleading statements of loss.

Insurance companies are also subject to strict deadlines to timely investigate and pay claims. The Texas Insurance Code imposes substantial penalties on insurance companies that violate important deadlines such as investigating claims, reserving rights, or paying covered claims.

The lawyers at Burdine Wynne have successfully represented numerous commercial and individual policy holders in bad faith insurance claims, coverage disputes, and deceptive insurance practices. If you are involved in an insurance claim dispute with your carrier, put our lawyers to work for you.



$39.6 Million unanimous jury verdict on behalf of Kuwaiti subcontractor in Assoc. Const. Co.WLL v. KBR, Inc. in a complex contract dispute

$32.5 Million mediated settlement in 3CI, Inc. v. Stericycle, Inc., a minority shareholder class action lawsuit

$8.2 Million unanimous jury verdict on behalf of oil and gas firm against the Railroad Commission of Texas and plugging contractor Superior Energy Services for the wrongful plugging and abandonment of an orphaned offshore gas well

$5 Million arbitration award in Buffalo/Alabama Apartments Ltd. v. Steadfast Ins. Co. professional negligence by engineers

Successful Confidential Recovery Rathborne Properties, LLC, et al v. ExxonMobil Corporation, et al, NORM contamination suit – damages claimed in excess of $100 Million

Hundreds of Millions of dollars collected in confidential settlements and verdicts against some of the largest companies and most prestigious law firms in the country. The Firm has also defended clients against claims for hundreds of millions of dollars in the aggregate.

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1415 Louisiana St., Suite 3900 Wedge International Tower Houston, Texas 77002
Phone: 713.227.8835 - Fax: 713.227.6205