This week the Texas Supreme Court issued four grants, one of which will address issues of particular interest.
On February 26, 2020, the Court will hear oral arguments in Loya Insurance Co. v. Osbaldo Hurtado Avalos and Antonio Hurtado from Webb County and the San Antonio Court of Appeals. In this insurance-defense case the Court will address two main issues. First, the Court will determine whether undisputed, extrinsic evidence of fraud and collusion aimed at obtaining coverage necessitates creating an exception to the prohibition against considering such evidence under the eight-corners rule. Second, the Court will evaluate whether the insurer was required to pursue a declaratory action in order to establish that it had no duty to defend prior to terminating representation in the underlying action.