Employers Casualty Co. v. Block

OPINION ON REHEARING

MAUZY, Justice.

Our opinion of January 6, 1988 is withdrawn and the following is substituted.

This case involves a claim for insurance proceeds resulting from an alleged breach of an insurance contract. The trial court granted the homeowners’ motion for directed verdict in regard to the insurer’s wrongful failure to defend, but granted the insurer’s motion for judgment notwithstanding the verdict and rendered a take-nothing judgment against the homeowners. A divided court of appeals reversed and rendered, holding that once the issue of wrongful failure to defend was…