The Henley v. Love Lesson: Where Experts Must Tread
In addition to the complexities inherent in coverage law, coverage litigation brings its own set of challenges. One recurring question: When does a coverage case require an expert opinion?
To Protect Itself, Insurer Must Consider Agency Principles Before Issuing Payment to Joint Payees
Insurers frequently issue checks to multiple payees – usually to some combination of the insured, adjuster / third-party administrator, mortgagee or lienholder, and attorneys.
Texas Supreme Court Denies Rehearing in U.S. Metals v. Liberty Mutual
by Robert Witmeyer >On June 17, 2016, the Texas Supreme Court denied the parties’ motions for rehearing in U.S. Metals v. Liberty Mutual, No. 14-0753, 2015 WL 7792557 (Tex. Dec. 4, 2015). The Court’s opinion represents the current law in Texas for “property damage” and the “impaired property” exclusion under…
A Year in the Life of the Eight-Corners Rule: Recent Developments in the Duty to Defend
by Tamara Bruno A Year in the Life of the Eight-Corners Rule: Recent Developments in the Duty to Defend One of the most well-known, frequently cited, and seemingly fixed legal principles in Texas insurance case law is, of course, the “eight-corners” rule – also known as the “complaint allegation” rule…
Stowers After Patterson: Same As It Ever Was?
by Matthew Steven Paradowski In April 2015 an opinion issued by the First District Court of Appeals in Houston caught the rapt attention of liability insurers and insurance law practitioners in the State of Texas, as it appeared to fundamentally alter the Stowers duty—the sole common law duty owed by…
Fifth Circuit Rules That Insured May Not Rely on Conclusory Expert Affidavit to Survive Summary Judgment
by Tae Andrews A recent Fifth Circuit decision has reaffirmed that an insured cannot withstand an insurer’s motion for summary judgment by presenting only an expert’s conclusory affidavit as evidence. In Stagliano v. Cincinnati Insurance Co., No. 15-10137 slip op. at 2 (5th Cir. Dec. 11, 2015), the insured plaintiffs…
No Public Policy Against Insurer Funding Settlements of Claims Seeking Disgorgement
by Nancy Randolph Kornegay Casenote: Burks v. XL Specialty Insurance Co 2015 WL 6949610, —S.W.3d—(Tex. App.—Houston [14th Dist.], Nov. 10, 2015). There are not a lot of Texas appellate-court decisions on D&O coverage issues. This very recent decision could end up being quite significant. Burks and XL Specialty have since settled,…
Fifth Circuit Certifies Vail Actual Damages Issue to Texas Supreme Court
by Linda M. Dedman Casenote: Cameron International Corporation v. Liberty Insurance Underwriters Co-author: Floyd Clardy, III The Fifth Circuit has acknowleged that it may have erred in denying claims under the Texas Insurance Code when there is evidence that an insurer failed to pay a claim when coverage was reasonably clear but…
Lynd Decision Upholds Longstanding Canons of Policy Construction Favoring Insureds
by Tae Andrews Casenote: RSUI Indem. Co. v. Lynd Co (Tex. May 8, 2015). A recent Supreme Court of Texas decision reemphasized well-established rules of insurance policy interpretation that benefit policyholders. In 2005, the Lynd Company purchased two layers of insurance to cover various properties. Westchester Fire Insurance Company provided primary coverage…
The Implications of the Deepwater Horizon Decision
by Veronica Martinsen Bates In a case worth hundreds of millions of dollars, the Texas Supreme Court definitively ruled that coverage to an additional insured, when acquired by contract, is limited not only by the policy terms but also by the terms of the contract itself. In Re Deepwater Horizon, 2015 WL…