On April 7, 2017, the Texas Supreme Court in USAA Tex. Lloyds Co. v. Menchaca,1 answered several issues that had continually swirled around litigation arising out of Hurricane Ike policy disputes. Unresolved issues included among others:
- Whether an insured is required to obtain a breach of contract finding as a prerequisite to a recovery for an insured’s extra-contractual claims such as an insurer’s violations under the Texas Insurance Code; and
- if an insured can show entitlement or a right to policy benefits, whether those policy benefits can serve as actual damages for extra-contractual claims even if the insured cannot establish a breach of contract claim.