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GULF INS. CO. v. BURNS MOTORS, INC.

No. 98-1168.

22 S.W.3d 417 (2000)

The GULF INSURANCE COMPANY and Select Insurance Company, Petitioners, v. BURNS MOTORS, INC., Assignee of Leroy Nash, individually and d/b/a Nash & Associates, Respondents.

Supreme Court of Texas.

Decided April 20, 2000.

Attorney(s) appearing for the Case

Clay E. Coalson, Carlos A. Mattioli, Robert J. Sigler, Rebecca R. Kieschnick, Corpus Christi, Cesar Ricardo Perez, McAllen, for Petitioners.

Rex N. Leach, McAllen, for Respondents.

Justice GONZALES delivered the opinion of the Court.

The main issue here is whether an insurance agency agreement obligates the signatory insurance companies to indemnify their agent for an agreed judgment rendered against the agent because of his misrepresentations to an insured. In a prior DTPA lawsuit, the insured obtained a judgment against the insurance agent for his misrepresentations about the commercial liability policy he sold to the insured. After judgment...

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