Here is another Texas Insurance Code, Section 542A.006 case. The opinion is from the Texas Southern District, Laredo Division. It is styled, Yarco Trading Company, Inc., et al. v. United Fire & Casualty Company, et al.
This case was filed in State Court and United removed the case to Federal Court. United argued the adjuster was improperly joined and after citing Texas Insurance Code, Section 542A.006, accepted responsibility for the adjuster, thus, arguing that the adjuster had to be dismissed, resulting in diversity jurisdiction pursuant to 28 U.S.C., Section 1441(a). Yarco sought to have the case remanded to the State Court.
First, the court addressed the improper joinder argument and ruled in favor of Yarco.