TX STATETexas Court of Appeals, 14th District (Houston)
2002

Baty v. ProTech Insurance Agency

63 S.W.3d 841Texas Court of Appeals, 14th District (Houston) • Decided 2002Remanded
FLAGSHIPLiquidated DamagesCited 177 times

HOLDING

An insurance agency settled some disputes with former officers but didn't mention tort claims in the settlement agreement. The court ruled that settling contract claims doesn't automatically settle separate tort claims like breach of fiduciary duty, tortious interference, or defamation. This matters to subcontractors because settlement agreements must explicitly cover all types of claims you want to release, or you may face additional lawsuits later.

KEY FINDINGS

Liquidated Damages

Always list specific claim types in settlement agreements—don't assume contract settlements cover tort claims automatically

FULL COURT OPINION