Hernandez v. Gulf Group Lloyds

PHILLIPS, Chief Justice, and GONZALEZ, HIGHTOWER, HECHT, DOGGETT, CORNYN and GAMMAGE, Justices, join.

In this cause, we consider whether an insurer may deny an uninsured/underinsured motorist claim on the basis of a “settlement without consent” exclusion clause absent any showing that the settlement prejudiced the insurer. The trial court rendered judgment in favor of the insureds. The court of appeals reversed, reasoning that the insureds had violated their insurance contract by settling with the underinsured motorist without the insurer’s consent. 876 S.W.2d 162. We hold that an insurer may…