Lawyers handling car wreck cases would be especially interested in this 2017 opinion from the Texas Supreme Court. It is styled, Farmers Texas County Mutual Insurance Company v. Jennifer L. Zuniga et al.
This is an appeal from the granting of a summary judgment in favor of Zuniga wherein Farmers had asked the court to rule that there is no coverage under the policy at issue for punitive damages. This Court reversed that summary judgment.
Determining whether exemplary damages for gross negligence are insurable requires a two-step analysis. First, the Court decides whether the plain language of the policy covers exemplary damages sought in the underlying suit against the insured. Second, if the Court concludes that the policy provides coverage, it determines whether the public policy of Texas allows or prohibits coverage in the circumstances of the underlying suit.