Lyons v. Millers Casualty Insurance Co. of Texas

in which PHILLIPS, Chief Justice, and GONZALEZ, HECHT, ENOCH and SPECTOR, Justices, join.

This case presents us with the opportunity to clarify the method by which Texas courts should conduct legal sufficiency review of factfindings of bad faith against an insurer. After a windstorm, Golda Lyons submitted a claim to Millers Casualty Company, her homeowner’s insurance carrier, for damage to the brick veneer and outside back staircase of her house. Following an investigation, Millers denied Lyons’ claim. Lyons sued for breach of contract and of the duty of good faith and fair dealing. The…