Do automobile liability insurers have a duty not-to-settle third-party claims, when it becomes reasonably clear that the peril insured against—policyholder negligence—has not occurred, and therefore, it is reasonably clear that the policyholder is not 'legally liable'?

QUESTION PRESENTED Do automobile liability insurers have a duty notto-settle third-party claims, when it becomes reasonably clear that the peril insured against— policyholder negligence—has not occurred, and therefore, it is reasonably clear that the policyholder is not “legally liable”? iia PARTIES TO PROCEEDINGS AND CASES Parties to Proceedings ; e Petitioner is Juan A. Martin-de-Nicolas in the courts below). e Respondent is AAA Texas County Mutual Insurance Co. (hearafter “AAA”). (Appellee/Defendant in the courts below). List of All Proceedings e No. 64557, Justice of the Peace Court, Precinct Two, Travis County Texas. Summary judgment order entered on February 23, 2016. e No. C-1-CV-16-003312, County Court at Law No. 2, Travis County Texas. Summary judgment order entered on October 26, 2016. e No. 03-17-00054-CV, 2018 Tex. App. LEXIS 2747 : (Tex. App.—Austin Apr. 19, 2018, no pet. h.) (mem. op.). Time extensions granted. Memoran. dum opinion and judgment entered on April 19, 2018. Motion for rehearing denied on May 15, ; 2018. Motion for en banc reconsideration denied : on June 20, 2018. Reprinted in