In Yowell v. Seneca Specialty Ins. Co., 2015 WL 4575450, 2015 U.S. Dist. LEXIS 98719 (E.D.Tex., Jul. 28, 2015), the Eastern District of Texas ruled that an insurer’s unexplained, 140-day delay in agreeing to defend its insured constitutes a breach of the duty to defend. As a consequence, the court ruled that the insurer had waived its right to control the defense, though it did not lose the right to contest the reasonableness and necessity of the attorney’s fees subject to reimbursement. Factual and Procedural Background Plaintiffs Barry and Rebecca Schneider (the “Schneiders”) filed a lawsuit against David Yowell and David Yowell Construction, LLC (collectively “Yowell”) asserting claims for breach of contract, fraud, and violation of the Texas Deceptive Trade…
