ST. PAUL FIRE AND MARINE INSURANCE COMPANY v. CONVALESCENT SERVICES, INC.

No. 98-20413.

193 F.3d 340 (1999)

ST. PAUL FIRE AND MARINE INSURANCE COMPANY; St. Paul Mercury Insurance Company, Plaintiffs-Appellees, v. CONVALESCENT SERVICES, INC. doing business as Bayou Glen Nursing Home; Mark Schultz, executor of the estate of Jacob Schultz; Lillian Schultz, Defendants-Appellants.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied November 30, 1999.


Attorney(s) appearing for the Case

Michael Wallace Huddleston (argued), David John Kennedy Metzler, McCauley, MacDonald, Devin & Huddleston, Dallas, TX, for Plaintiffs-Appellees.

James Bradley Lewis (argued), Glover Anderson, Lewis & Prebeg, Houston, TX, for Defendants-Appellants.

Before POLITZ, DeMOSS and BENAVIDES, Circuit Judges.


Rehearing En Banc Denied November 30, 1999.

BENAVIDES, Circuit Judge:

This appeal involves the scope of an insurer's duty to its insured in the context of settlement negotiations under Texas law. Concluding that the Texas Supreme Court would not impose a duty upon an insurer to take into consideration a claim specifically excluded from coverage, we affirm.

I. BACKGROUND

St. Paul Fire and Marine Insurance Company (St.Paul) filed a complaint...

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