Opinion ID: 2377950
Heading Depth: 1
Heading Rank: 2

Heading: the stowers claim

Text: Trinity first argues that the court of appeals erred because it did not render judgment for Trinity on the Stowers claim. We agree. Under the doctrine established in G.A. Stowers Furniture Co. v. American Indemnity Co., an insured can sue his insurer for negligently failing to settle a third party's claim against the insured. See 15 S.W.2d 544, 547 (Tex. Comm'n App.1929, holding approved). As a threshold matter, a settlement demand must propose to release the insured fully in exchange for a stated sum of money. Texas Farmers Ins. Co. v. Soriano, 881 S.W.2d 312, 314 (Tex.1994); accord American Physicians Ins. Exch. v. Garcia, 876 S.W.2d 842, 848-49 (Tex.1994). Assuming without deciding that Villegas's letter was in fact a settlement offer, and further assuming that a Stowers demand may be made on behalf of only some of the total pool of potential plaintiffs, Villegas did not meet the requirement that he offer to release those claims fully. See Soriano, 881 S.W.2d at 314-15. Here, Trinity never had a Stowers duty to settle because Villegas never offered a full release even of his five clients' claims. When a hospital lien exists, a release is not valid unless: (1) the hospital's charges were paid in full before the execution and delivery of the release; (2) the hospital's charges were paid before the execution and delivery of the release to the extent of any full and true consideration paid to the injured individual by or on behalf of the other parties to the release; or (3) the hospital is a party to the release. TEX. PROP.CODE § 55.007(a). Villegas made one written and several oral offers to settle. None of the offers included the hospital liens. In fact, when Villegas contacted the hospitals, they refused to release their liens. Any implied release that Villegas offered to Trinity was not a full one under section 55.007(a). Consequently, he could not have fully settled the case, even for his initial five clients. Accordingly, Bleeker cannot prove his Stowers case.