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Click here for the full text of this decision FACTS:Litigation between Juan DeLaGarza centered on whether State Farm Mutual Automobile Insurance violated the prompt-payment deadlines of Texas Insurance Code Article 21.55. The record showed that State Farm accepted part of DeLaGarza’s insurance claim based on information DeLaGarza provided. State Farm offered to pay DeLaGarza the portion of the claim it had accepted within five days of receiving notice that DeLaGarza was willing to settle for an undisputed amount. In a case decided July 14, 2005, this court ruled that State Farm did not violate Article 21.55 because the deadline to send payment was never triggered. DeLaGarza filed a motion for rehearing, saying this court’s decision conflicts with Republic Underwriters Ins. Co. v. Mex-Tex Inc., 150 S.W.3d 423 (Tex. 2004). HOLDING:Motion for rehearing denied; supplemental opinion issued. The court finds that central to the Supreme Court’s analysis in Republic Underwriters was that an insurance company cannot force an insured to settle for less that he is legally entitled to receive by placing a condition on prompt payment that claims for further payment will be released. Unlike Republic Underwriters, there was no showing in this case that DeLaGarza was legally entitled to more money than the partial payment State Farm offered in exchange for the release. “Although State Farm ultimately paid DeLaGarza the full amount of his claim to settle the dispute, DeLaGarza never established that State Farm was legally obligated under the terms of his policy to pay him the full amount he claimed. Absent a showing State Farm was not entitled to the release it sought, the rationale in Republic Underwriters is inapplicable.” OPINION:Morris, J.; Morris, Francis and Lang-Miers, JJ.

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