Ben Villarreal Jr., Cleo Martinez, and Lacasa Martinez Texmex, Inc. v. United Fire & Casualty Company D/B/A United Fire Group

MANSFIELD, Justice.

A restaurant was severely- damaged by fire. The owners made an insurance claim, but much of the claim was denied. They ultimately sued the insurer for policy benefits. They obtained a jury verdict and judgment against the insurer, which the insurer paid. Thereafter, they brought a separate action against the insurer for bad faith, alleging it had lacked a reasonable basis for its prior refusal to pay these benefits. The district court granted the insurer’s motion for summary judgment on the basis of claim' preclusion: The court of appeals reversed.

On further review, we must…