The insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026).

Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible.

Plaintiff hired a public adjuster, who estimated that the actual damage incurred was $99,676.22. Defendant received the estimate and over 200 photos provided in an email link. Defendant refused additional payment, contending that the public adjuster’s estimate included damage outside the scope of the policy.

Plaintiff sued for breach of contract and breach of the duty of good faith and fair dealing. Defendant filed a motion for partial summary judgment on plaintiff’s extra-contractual claim.

The court denied the motion insofar as it sought to dismiss the bad faith claim. The evidence showed that plaintiff consulted a public adjuster, who provided defendant with over 200 photos of damage to support a higher damage estimate. Defendant provided no evidence that it conducted a further investigation upon receipt of this evidence. In fact, defendant did not even allege that it tried to investigate the photos further.

The Teas Supreme Court was clear that failing to reasonably investigate a claim may be sufficient to breach the duty of good faith. Whether defendant’s failure to investigate further was reasonable was a question for the jury, not the court.