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McFARLAND v. FRANKLIN LIFE INSURANCE COMPANY

No. B-49.

416 S.W.2d 378 (1967)

Gwendolyn McFARLAND, Petitioner, v. The FRANKLIN LIFE INSURANCE COMPANY, Respondent.

Supreme Court of Texas.

June 7, 1967.

Attorney(s) appearing for the Case

Stubbeman, McRae, Sealy & Laughlin, Gene L. Jameson and Milton L. Bankston, Midland, for petitioner.

Turpin, Smith, Dyer, Hardie & Harman, James T. Smith, Midland, for respondent.

WALKER, Justice.

This appeal involves an asserted right to recover a twelve per cent penalty and attorney's fees under Article 3.62 of the Insurance Code, V.A.T.S.1 The principal question to be decided is whether The Franklin Life Insurance Company, respondent, had reasonable grounds for anticipating rival claims. We hold that as a matter of law it did not.

In 1950 respondent issued...

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