August 2024

Subscribe to our Newsletter!

 "Do not withhold good from those to whom it is due, when it is in your power to act."

Proverbs 3:27

Greetings from Lane Farley

I have now written enough newsletter introductions that include firm trivia, that I now am calling it a tradition. I pondered breaking that tradition and going with current events, but somehow discussions of sweltering summer temperatures or Olympic gymnastics just didn’t seem fitting. So let’s just launch on the trivia. You know the rules: answers at the end of the newsletter … and no peeking.


  1. The firm has recently joined Colleen Smith in celebrating her retirement. Colleen provided excellent and expert guidance as the firm’s Executive Director for how many years? And for bonus points, what is the name of our new Executive Director that has capably picked up the mantle? Please join me in giving a warm welcome and celebrating the arrival of fill in the name.
  2. OK, so I lied about not discussing the Olympics. If Fred Arias were in the summer games, what would be his sport?
  3. The firm recently celebrated how many years of working tirelessly for our clients?
  4. FFSS recently reconvened our famous softball team. Thankfully, our wins at the courthouse are better than those on the diamond. What was our record this year?
  5. Speaking of softball, which of our lawyers pulled off the incredible feat of an in-field home run on a bunt? And speaking of “pulled,” how many quadriceps did this lawyer pull as a part of this effort?
  6. What number do you call to activate our Rapid Response Team in the event of a catastrophic accident?
  7. What is the name of the lawyer that lazily just writes random trivia for his newsletter introductions?

Stowers Requirements Continue to be Strictly Construed

by Craig Reese

In Golden Bear Ins. Co. v. 34th S&S, LLC, 2024 WL 3321508 (S.D. Tex. 2024), Judge Hittner held that an insurance carrier was not liable for a judgment in excess of policy limits because the Stowers demand did not meet one of the requirements to be an effective demand.


A duty under the Stowers doctrine is not invoked unless the settlement demand involves (1) a claim within the scope of coverage, (2) the demand is within policy limits, and (3) the terms of the demand are such that an ordinarily prudent insurer would accept it, considering the likelihood and degree of the insured’s potential exposure to an excess judgment. American Guarantee & Liab. Ins. Co., 990 F.3d 842, 847 (5th Cir. 2021); Texas Farmers Ins. Co. v. Soriano, 881 S.W.2d 312, 314 (Tex. 1994). The settlement terms must be clear and undisputed and must clearly state a sum certain. Rocor Int’l, Inc. v. National Union Fire Ins. Co., 77 S.W.3d 253, 262-63 (Tex. 2002). The Texas Supreme Court has recognized that in place of a stated sum, the demand can be for policy limits. Id.


In the Golden Bear cases, the carrier issued a commercial general liability policy to the insureds with a policy limit of $1 million. The insureds were sued for injuries sustained during the plaintiffs’ patronage of their establishment. Counsel for the plaintiffs sent a settlement demand requesting “payment of all policy limits of any and all insurance contracts.” The demand was rejected by the carrier and when the case went to trial, the jury returned a verdict totaling $3.2 million against the insureds.


The carrier then filed suit in federal court seeking a declaration that the demand did not invoke liability under the Stowers doctrine. The court had no problem rejecting the contention that the carrier was not entitled to bring an action for declaratory judgment regarding its duties under the Stowers doctrine.


The court then turned to the issue of whether the settlement demand met the requirements of a valid Stowers demand such that the carrier was exposed to the full amount of the judgment, as opposed to policy limits. The court concluded that an offer to settle all claims “in exchange for the payment of all policy limits of any and all insurance contracts” lacked the clear intent of a sum certain necessary to invoke Stowers. The court went on to note that the carrier never received an offer containing a demand of an unambiguous and certain sum, and thus, received no demand triggering a Stowers obligation.

BEST LAWYERS


We are proud to announce the recognition of Lane Farley, Doug FletcherJoanna Salinas, and Mike Shipman by Best Lawyers as part of The Best Lawyers in America.

ONES TO WATCH


Additional congratulations to Mark "DJ" Hardy for his inclusion in Best Lawyers: Ones to Watch in America.

Thank you for being an essential part of our success. Happy Anniversary!

Doug Fletcher

8/1 - 32 years

Sheila Landua

8/1 - 32 year

Miguel Bustilloz

8/9 - 7 years

Alexandra Griffiths

8/10 - 3 years

Jeff Smith

8/21 - 10 years

32 YEARS OF SERVICE


This month Fletcher Farley also celebrates it's own anniversary! The firm has been practicing for 32 years and is looking forward to many more to come.

TEXAS LAW UPDATE IN CHICAGO


For Insurance Claim Professionals, Risk Managers, and In-House Counsel.


Our Seminar is free of charge and will include materials, continental breakfast, lunch and continuing education hours approved through the Texas Department of Insurance and the State Bar of Texas.

Register Now

FEDERATED CHALLENGE



We are proud to have sponsored the Federated Challenge this year and support a great cause. Over four million dollars were raised for the Big Brothers Big Sisters organization.


TRUCKING ASSOCIATION CONFERENCE


This year we had the privilege to sponsor the Texas Trucking Association Annual Conference.

DFW RIMS


Don't miss seeing us at this years DFW RIMS Conference! We will be exhibiting on September 19th and look forward to a great event.

RICHARD MILLER RETIRES


Richard Miller has retired from Fletcher Farley after having been with the firm for 25 years. He has made great contributions over the years and will be missed. We wish him the best in retirement!

Trivia Answers:

  1. 10 years. Cody Tucker.
  2. Pommel Horse (See the resemblance?)
  3. 32 years.
  4. 1 and 6.
  5. Joe Harrison. Both.
  6. 866-786-1058
  7. Lane Farley

Fletcher Farley Shipman & Salinas LLP


fletcherfarley.com

Contact Us
Facebook  X  Instagram  Linkedin