A federal district court in Texas dismissed on summary judgment an insured’s claims under Chapter 541 of the Texas Insurance Code (Unfair Claims Practices Act), finding that there was no injury independent of the denial of policy benefits to support an extra-contractual claim.Admiral Ins. Co. v. Petron Energy, Inc., 2014 WL 798374 (N.D. Tex. Feb. 28, 2014). 

The insured’s Chapter 541 claims for attorneys’ fees were based solely on the insurer’s breach of its duty to defend. The court rejected the insured’s argument that the attorneys’ fees it incurred constituted an independent injury. Otherwise, it concluded, every coverage dispute would automatically become a Chapter 541 case.