Insurance Settlement Leaves Gaps in Texas Causation Doctrine

Allstate Vehicle and Property Insurance Co. has settled with a property owner in a suit involving property damage with more than one cause that was scheduled for oral argument in the Texas Supreme Court next week, leaving potentially significant gaps in the law.

Harold Overstreet alleged his leaky roof was caused by a strong hailstorm, but Allstate argued that almost all the roof damage was due to uncovered causes, including a combination of wear and tear and earlier hailstorms that hit the roof before the policy was purchased.

The parties reached a settlement and filed a joint motion to dismiss ...