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SEGUROS TEPEYAC, S. A., COMPANIA MEXICANA v. BOSTROM

No. 21167.

347 F.2d 168 (1965)

SEGUROS TEPEYAC, S. A., COMPANIA MEXICANA de SEGUROS GENERALES, Appellant, v. Maynard BOSTROM and James L. Jernigan, Appellees.

United States Court of Appeals Fifth Circuit.

June 16, 1965.

Attorney(s) appearing for the Case

William M. Brown, Brown, Herman, Scott & Young, Fort Worth, Tex., for appellant, Cantey, Hanger, Gooch, Cravens & Scarborough, Fort Worth, Tex., of counsel.

John Alan Appleman, Urbana, Ill., Albert H. Manus, Jr., Freeport, Ill., Joe Spurlock, Fort Worth, Tex., Stanley S. Crooks, Dallas, Tex., Jean Appleman, Urbana, Ill., for appellees.

Jerome Sneed, Jr., Austin, Tex., for American Mut. Ins. Alliance, amicus curiae.

Keith F. Kelly, Kelly, Morris, Walker & Maynard, Fort Worth, Tex., for the National Association of Independent Insurers, amicus curiae.

Julietta Jarvis, Chilton Bryan, Houston, Tex., for Aseguradora Reforma, S. A., Cia. General De Seguros, and others, amici curiae, Bryan & Patton, Houston, Tex., of counsel.

Before BROWN and WISDOM, Circuit Judges, and ESTES, District Judge.

WISDOM, Circuit Judge:

This case presents a new twist in the Texas Stowers doctrine. When an injured person claims damages against an insured tort-feasor for an injury covered under a liability policy, the Texas Stowers doctrine requires the insurer to exercise ordinary care to protect the insured to the amount of the policy limits.1 If the insurer breaches that duty, the insured has a cause of...

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