State Farm Fire & Casualty Co. v. Fullerton

PATRICK E. HIGGINBOTHAM, Circuit Judge:

This case requires us to surmise how a Texas court would rule on a question that has received diverse answers in those states that have considered it: whether an insured’s guilty plea in a prior criminal proceeding can preclude third parties from collecting on the insured’s policy. More specifically, we must determine whether Texas law allows the heirs of the victims of a shooting to argue that the shooting was unintentional in spite of the fact that the insured pled guilty to murder.

We hold that the insured’s guilty plea satisfies the requisites of…