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Gregory S. Hudson

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: Houston
LyondellBasell Tower
1221 McKinney Street
Suite 2900
Houston, TX 77010
P: (832) 214-3909
TF: (800) 448-8502
F: (832) 214-3905

Gregory S. Hudson

Recent Publication:
Texas Supreme Court Clarifies Whether Bad Faith Liability May Exist in Absence of a Policy Breach [Global Insurance Alert]
Greg Hudson discusses the Texas Supreme Court's decision in Menchaca v. USAA Texas Lloyds Company. The court articulates five rules when extracontractual causes of action are available even when there has been no breach of the insurance policy and clarifies the procedural steps a court should follow in determining which rule applies.
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Gregory S. Hudson focuses his practice on insurance coverage matters, and has experience in first and third party defense matters and bad faith claims for domestic and overseas carriers. He has also represented clients in complex products liability and toxic tort litigation involving both fact development and complex e-discovery management. Greg routinely consults with corporate and insurance clients regarding litigation matters, and represents those clients in both trial and appellate matters.

Greg earned his undergraduate degree, cum laude, from Trinity University and his law degree, cum laude, from the University of Texas School of Law. Greg has been married for 20 years, and has two children, Sarah (12) and Christian (9).

Experience

Publications

Texas Supreme Court Clarifies Whether Bad Faith Liability May Exist in Absence of a Policy Breach [Global Insurance Alert]

April 20, 2018

Greg Hudson discusses the Texas Supreme Court's decision in Menchaca v. USAA Texas Lloyds Company. The court articulates five rules when extracontractual causes of action are available even when there has been no breach of the insurance policy and clarifies the procedural steps a court should follow in determining which rule applies.

Is It Bad Faith to Exercise a Contractual Right? [Avoiding Insurance Bad Faith Blog]

December 14, 2017

A recent malpractice case highlighted this issue. In Johnson v. Proselect Insurance, the doctor/insured contended that the insurer acted in bad faith by settling a claim after trial without the doctor’s consent. The doctor contended that the case should have been appealed, which would have...

Texas Amends Insurance Code In Response To Weather Claims [Avoiding Insurance Bad Faith Blog]

August 14, 2017

On May 26, 2017, Texas Governor Greg Abbot signed into law Texas House Bill 1774/Senate Bill 10. The new law makes changes to the Texas Insurance Code that will impact the way in which weather claims are brought and how those claims may be defended. The new law becomes effective on September 1,...

Ninth Circuit Upholds Bad Faith Award Despite Issues With Policy Limits Demand [Avoiding Insurance Bad Faith Blog]

July 06, 2017

In Madrigal v. Allstate Indemnity Co., Cause No. 16-55830 (9th Cir. June 15, 2017), the Ninth Circuit upheld a jury award assessing $14 million in bad faith damages, even though it was unclear whether the insurer could have met the settlement demand which it allegedly refused in bad faith. The...

Eleventh Circuit Reaffirms There Is No Bad Faith Unless the Settlement Offer Fully Protects the Insured [Avoiding Insurance Bad Faith Blog]

May 11, 2017

Recently, the Eleventh Circuit, applying Georgia law, reaffirmed that an insurer cannot be liable for negligently failing to settle a case unless the settlement demand provides protection to the insured against all potential claims, even those which have not been asserted. Linthicum v. Mendakota...

Texas Supreme Court Broadly Defines Successor When Enforcing the Insured v. Insured Exclusion [Global Insurance Alert]

March 01, 2017

Greg Hudson discusses the Texas Supreme Court decision that the language of the insured v. insured exclusion also includes any claim where a party has stepped into the shoes of an insured.

Fifth Circuit Provides Road Map for Review and Trial of Bad Faith Claims in Mississippi [Avoiding Insurance Bad Faith Blog]

January 06, 2017

Mississippi essentially has three levels of claim when insurance is at issue: (1) mere breach of contract, allowing recovery of contract damages; (2) breach of contract + no arguable basis for breach, which entitles recovery of consequential damages; and (3) breach of contract + no arguable basis...

First Circuit Provides Guidance as to When a Notice of Claim Triggers Policy Obligations [Avoiding Insurance Bad Faith Blog]

December 14, 2016

When does receipt of a pre-suit claim notice letter trigger an insurance carrier’s obligation to provide a defense and/or indemnity? In Sanders v. Phoenix Insurance Co., the First Circuit provided some guidance to this question, holding that a pre-suit notice letter would not trigger a carrier’s...

Texas Supreme Court to Decide Whether a Policyholder Can Recover Damages When The Carrier Does Not Breach the Policy [Avoiding Insurance Bad Faith Blog]

September 15, 2016

According to both the appellant and the appellee, the Texas Supreme Court already decided this issue. Each, of course, finds a different answer. Cause No., 14-0721, USAA Texas Lloyds Co. v. Gail Menchaca, in the Texas Supreme Court, arises from an unusual fact pattern and some unusual jury...

Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result [Avoiding Insurance Bad Faith Blog]

July 22, 2016

Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect which an appraisal award may have. A case in point is Graber v. State Farm...

When is Rescission Based Upon Material Misrepresentations The Proper Course of Action? [Avoiding Insurance Bad Faith Blog]

May 12, 2016

Carriers rely on application representations regarding the existence of potential claims. Sometimes, the carrier learns after the fact that an applicant may not have reported all known potential claims. What can/should the carrier do? A recent example is found in Continental Casualty v....

Avoid Inconsistent Communications By “Revolving Door” Adjusters [Avoiding Insurance Bad Faith Blog]

May 04, 2016

In CE and CLE courses, we hear all the time that the most often cited reason for a grievance or complaint is lack of communication. This truism provides a useful rule of thumb to avoid bad faith claims. Remember, for most claimants, the event giving rise to an insurance claim often is the most...

Reservation of Rights Letters Help Avoid Prejudice in the Third Party Context [Avoiding Insurance Bad Faith Blog]

April 20, 2016

When discussing bad faith in the third party context, most of the discussion properly centers on the duty to settle a claim. However, other actions taken by a policyholder and carrier can have an impact. The recent case of State Farm v. El-Moslimany provides a good example. In El-Moslimany, State...

Texas Joins Modern Trend of Allowing Loss of Use Damages in Total Loss Situations [In the Know]

April 11, 2016

Ron Tigner and Gregory Hudson discuss the growing trend of jurisdictions no longer recognizing any distinction between the recoverability of loss of use damages between partial and total destruction of personal property.

Texas Rule Change: Supreme Court Holds Loss of Use Damages Are Recoverable Where Property Total Loss [Property Insurance Law Observer Blog]

January 15, 2016

In J & D Towing, LLC v. American Alternative Insurance Corporation, No. 14-0574, 2016 WL 91201 (Tex. Jan. 8, 2016), the Texas Supreme Court considered J & D Towing, LLC’s (“J & D”) claim for loss of use damages under its underinsured motorist insurance policy, after J & D’s only...

Supreme Court of Texas Rules Installation of Faulty Product Not Covered by Standard CGL Policy [Global Insurance Alert]

January 13, 2016

Gregory Hudson and Adam Gutmann discuss the Supreme Court of Texas's decision that installation of a faulty component does not cause physical injury to the machinery onto which it is installed, even when removal of the faulty component causes damage during the repair process.

Texas Supreme Court Declines Opportunity to Review Appellate Decision Clarifying Insurer’s Settlement Obligations In Multi-Plaintiff/Multi-Insured Context [Avoiding Insurance Bad Faith Blog]

September 23, 2015

Last year in Patterson, et al. v. Home State County Mut. Ins. Co., 2014 Tex. App. LEXIS 4460, 2014 WL 1676931 (Tex.App., Apr. 24, 2014), the Texas First Court of Appeals (Houston) held that an insurer was not obligated to accept a settlement demand unless that offer encompassed all claimants and...

Sixth Circuit Refuses to Create a Cause of Action for Reverse Bad Faith [Avoiding Insurance Bad Faith Blog]

May 14, 2015

In an opinion handed down last week, the Sixth Circuit Court of Appeals refused to adopt a new cause of action under Kentucky law for a reverse bad faith claim by an insurer against its insured where the Kentucky Supreme Court had not previously done so in State Auto Prop. & Cas. Ins. Co. v....

Texas Supreme Court Incorporates Limitations From An “Insured Contract” Into GL Policy [Global Insurance Alert]

February 27, 2015

In In re Deepwater Horizon, Cause No. 13-0670, Slip Op., Feb. 13, 2015, the Texas Supreme Court held that an allocation of liability found in an “insured contract” would determine the coverage provided to an additional insured in a general liability policy. Specifically, the court held that the additional insured had coverage under the general liability policy of the named insured only to the extent the named insured was required to obtain coverage for the additional insured.

Fifth Circuit Reaffirms the Importance of a Reasonable Claim Investigation Prior to Denial [Global Insurance Alert]

November 18, 2014

In Santacruz v. Allstate Texas Lloyds, Inc., 2014 WL 5870429 (Nov. 13, 2014), the 5th Circuit allowed a policyholder to pursue a claim for common law and statutory bad faith even though the policyholder repaired the alleged damage before the insurer was able to observe that damage.

Texas Court Construes Professional Liability Policy to Require Defense of Law Firm in Fee Dispute [Global Insurance Alert]

November 10, 2014

In Shamoun & Norman, LLP v. Ironshore Indemnity, Inc., Cause No. 3:14-1340, In the U.S. District Court, Northern District of Texas, the federal district court construed a professional liability policy issued by Ironshore to require a defense of the law firm policyholder in a fee dispute, despite an absence of allegations that the insured law firm negligently provided any legal service.

Texas Supreme Court Clarifies Scope and Application of the “Anti-Technicality” Statute [Global Insurance Alert]

September 08, 2014

In Greene v. Farmers Insurance Exchange, the Texas Supreme Court clarified the scope and application of § 862.054 of the Texas Insurance Code, the “anti-technicality” statute, holding that the clause would only operate in situations where the policyholder affirmatively violated an obligation created under the policy. The court further held that public policy did not change this result, despite the concurring opinion of two justices that argued that the court’s opinion created confusion as to whether and when public policy would dictate a different result. Specifically, the concurrence argued that the majority opinion failed to distinguish the instant case from prior cases involving a “nonmaterial breach” by a policyholder.

Guilty D&O May Lose Defense Costs, Indemnification Too [Law360]

June 17, 2014

Gregory Hudson, of the Global Insurance department writes an article titled" Guilty D&O May Lose Defense Costos, Indemnification Too," in Law360. In Protection Strategies Inc. v. Starr Indemnity & Liability Co., the U.S. District Court for the Eastern District of Virginia allowed an insurer to recoup over $670,000 in costs paid for its insured first to respond to government subpoenas and then for the insured and its key employees to defend themselves against claims for governmental fraud and conspiracy.

D&O Carrier Allowed to Recoup Defense and Indemnity Costs After Employees Plead Guilty to Misconduct [Global Insurance Alert]

May 05, 2014

In Protection Strategies, Inc. v. Starr Indemnity & Liability Co., the U.S. District Court for the Eastern District of Virginia allowed an insurer to recoup more than $670,000 in costs paid for the insured first to respond to government subpoenas and then for the insured and its key employees to defend themselves against claims for governmental fraud and conspiracy.

Florida Court Permits Bad Faith Claim by a Michigan Citizen Against a Michigan Insurer [Global Insurance Alert]

April 29, 2014

In Betzdolt v. Auto Club Group Insurance Company, a Michigan resident was allowed to proceed with a bad faith claim against her insurer in Florida, even though the insurer did not sell policies in Florida, did not deliver policies in Florida, and was not authorized to write insurance policies in Florida. Betzdolt arises in the context of a third-party liability case (car accident) in which the Michigan resident was being defended by the Michigan insurer in Florida.

Contractual Liability Exclusion Clarified by Texas Supreme Court in Ewing Constr. v. Amerisure [Global Insurance Alert]

January 27, 2014

In Ewing Construction Co. Inc. v. Amerisure Ins. Co., No. 12-0661, 2014 WL 185035 (Tex. Jan. 17, 2014), the Texas Supreme Court held that a general contractor who agrees to perform construction work in a “good and workmanlike manner” does not “assume liability” for damages arising out of the contractor’s defective work so as to trigger the contractual liability exclusion in a commercial general liability policy. This holding substantially clarifies the Texas Supreme Court’s prior holding in Gilbert Texas Construction LP v. Underwriters at Lloyd’s London, 327 S.W.3d 118 (Tex. 2010).

Alabama Supreme Court Corrects the Perception that a Alabama Law Contemplates Two Bad Faith Torts [Global Insurance Alert]

October 24, 2013

In Brechbill v. State Farm Fire & Cas. Co., No. 1111117, ___ So. 3d ___, 2013 WL 5394444, 2013 Ala. LEXIS 126 (Ala. Sept. 27, 2013), the Alabama Supreme Court held that there is only one, as opposed to two, causes of action for bad faith. More important, the Alabama Supreme Court held that a bad faith claim, no matter how plead, will not survive when an insurer can show a debatable reason for the denial.

Texas Supreme Court Revises New Rules for Expedited Trials and Dismissal of Baseless Claims Following End of Public Comment Period [Global Insurance Alert]

March 07, 2013

Following considerable public comment, the Texas Supreme Court revised and issued final approval of new rules providing for expedited trials and dismissal of baseless claims. Despite pleas from various factions, however, the new rules maintain their mandatory nature. The revisions do, however, contain material changes to the Alternative Dispute Resolution provision of new Rule 169 of the Texas Rules of Civil Procedure.

Texas Looks to 'Rejuvenate the Courthouse' With New Rules... [Global Insurance Alert]

February 15, 2013

In 2011, the Texas Legislature passed House Bill 274, directing the Texas Supreme Court to promulgate new rules reducing the expense and delay of litigation. House Bill 274 calls for early

Fifth Circuit Rejects Insured's Efforts to Secure Independent Counsel

November 06, 2012

On October 15, 2012, the U.S. District Court of Appeals for the 5th Circuit – applying Texas law – addressed another Cumis counsel matter. See Coats, Rose, Yale, Ryman & Lee, P.C. v. Navigators Specialty Ins. Co., No. 12-10055, 2012 WL 4858194 (5th Cir. Oct. 15, 2012).

Split Decisions: The Outcome of Court Cases Concerning Appraisals Varies from State to State for Insurers [Best’s Review]

May 01, 2012

Split Decisions: The Outcome of Court Cases Concerning Appraisals Varies from State to State for Insurers - Best’s Review -

Winter 2009 [Insurance Coverage Observer]

January 29, 2009

In this issue, we identify key coverage developments from the year 2008. We summarize recent court decisions dealing with coverage for toxic torts, environmental losses, construction defect and property losses. We also address new decisions in the areas of insolvency and reinsurance.

Part III: Don't Mess with Texas Bad Faith Law - Practical Tips for Handling First- and Third-Party Claims in the Lone Star State	Webinar	05/23/2018
Houston Claims Association's February CE Seminar	Houston, TX	02/08/2017
State Bar of Texas Webinar: U.S. Metals v. Liberty Mutual – Defective Components and the Impaired Property Exclusion	Webinar	04/20/2016
2015 Professional Liability Seminar	New York, NY	10/29/2015
2014 Professional Liability Seminar	New York, NY	10/23/2014
How to Try an Insurance Coverage Case	Katy, TX	01/28/2014

Practice Areas

Bad Faith

Casualty & Specialty Products Insurance

Insurance Coverage

Professional Liability Insurance Coverage

Industry Sectors

Insurance

Education

University of Texas–Austin, J.D., cum laude, 1994
Trinity University, B.A., cum laude, 1991

Bar Admissions

Court Admissions

Affiliations

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