Texas Disposal Systems, Inc. v. FCCI Insurance Co.

Court: 5th Cir  05/05/2021  Fifth Circuit Affirms Ruling for Insurers in Duty to Defend Dispute Arising out of Auto Accident, Subsequent Settlement

The court found that the primary insurer adhered to the terms of a settlement under which it timely paid its policy limits and withdrew from the insured's defense, and the excess insurer had no duty to defend and exercised its right not to defend the insured; therefore, the excess insurer did not breach its contract or owe extra-contractual damages to its insured.

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Menchacaextra-contractual claimsright to defendtermination of defenseAutomobile liability insurance policypolicy modificationduty to defendassumption of defensebreach of contractmotion to extend discoveryprejudicewaiverexhaustioninsurance towersettlement

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