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Windermere Oaks Water Supply Corp. v. Allied World Specialty Insurance Co.

Court: 5th Cir  05/09/2023  Fifth Circuit Confirms Contractual Liability Exclusion Does Not Preclude Duty to Defend

The Fifth Circuit Court of Appeals affirmed summary judgment granted by the district court holding that an exclusion for contractual liability in Public Officials and Management Liability policy did not preclude duty to defend insured water supply corporation from claims by members and partial owners of the corporation for breach of fiduciary duties and related claims which could stand alone even if no contract existed, and further holding the insurer was liable under the Texas Prompt Payment of Claims Act.

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