American Home Assurance Co. v. Cooper

This Court in Phelps Dodge Refining Corporation v. Marsh, 733 S.W.2d 359, 361 (Tex.App.—El Paso 1987), attempted, for the first time in this State, to set some guidelines by which a trial court could realistically determine whether a party had good cause to anticipate a lawsuit. We said:

Such manifestations could include commencing an investigation of the accident, retaining an attorney or private investigator and, of course, making a claim or demand for damages.

The court rejected a good faith belief, based on past experience.

That standard, whether right or wrong, did receive some acceptance.…