Insurance Law Section
ILS Events Calendar



Insurance Law Section Council Meeting (Austin)

10:00am - 2:00pm Offices of McGuire Woods LLP, Austin, TX



21st Annual Insurance Law Institute

November 10-11, 2016 at the Hotel Derek in Houston, Texas (More)



Insurance Law Section Council Meeting (Austin)

10:00am - 2:00pm Offices of McGuire Woods LLP, Austin, TX



Insurance Law Section Council Meeting (Houston)

10:00am - 2:00pm Offices of Pillsbury Winthrop Shaw Pittman LLP, Houston, TX



Insurance Law Section Council Meeting (San Antonio)

5:00pm - 7:00pm Hyatt Regency Hill Country Resort & Spa, San Antonio, TX



14th Annual Advanced Insurance Law Course

June 8-9, 2017 @ Hyatt Hill Country Resort & Spa in San Antonio, Texas (More)

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 CGL policy.  But the Court’s opinion likely will be most cited for an issue that the Court did not fully analyze—insurance coverage for “rip and tear” costs.       

The dispute arose from U.S. Metals’ sale of approximately 350 custom-made flanges to ExxonMobil for use in constructing non-road diesel units at ExxonMobil’s refineries.  The flanges were supposed to meet industry standards and were designed to be welded to piping.  The pipes and flanges were then covered with a special high temperature coating and insulation after they were welded together.  In post-installation testing, several flanges leaked.  Upon further investigation, it was determined that the flanges did not meet industry standards.  ExxonMobil decided it was necessary to replace all of the flanges to avoid the risk of fire and explosion.  For each flange, this process involved stripping the temperature coating and insulation (destroyed in the process), cutting t...(Continue)

Recent Decisions
Appellate Court Confirms Arbitration Award Finding No Coverage under Professional Liability Policy  
O'Grady v. National Union Fire Insurance Co. of Pittsburgh Tx 13- Corpus/Edbrg 9/24/16—
Claimant failed to provide an arbitration transcript or proof of evidence presented, so evidence was presumed adequate to support the award.
Court Denies a Rehearing for Workers' Comp Case  
Texas Department of Insurance v. Jones Tx Sup 9/23/16—
The Texas Supreme Court has refused to revisit its controversial ruling on the calculation of supplemental income benefits issued earlier this year.
District Court Issues Order Denying Coverage to Insured for Burglary Loss  
Perfit Vision v. Mount Vernon Fire Insurance Company SD Tx 9/22/16—
Court finds that insured's misrepresentations in applying for coverage voided insurance policy.
Northern District Grants Summary Judgment for Insurer in Commercial Property Insurance Dispute, Dismisses Case with Prejudice  
One Way Investments, Inc. v. Century Surety Co. ND Tx 9/21/16—
Court holds that insured failed to introduce evidence for allocation of damages between covered and uncovered loss, which was fatal to the claim.
Fifth Circuit Reverses and Remands Court's Holding on Standing Issue, Affirms Order Finding Decedent in "Course and Scope of Employment"  
New Hampshire Insurance Co. v. Dominguez 5th Cir 9/19/16—
Court finds that lower court's sua sponte ruling on standing prevented factual development, but evidence was clear that decedent was working on the day he was killed.
Insurer Denied Mandamus in Discovery Dispute  
In Re State Farm Lloyds Tx 13- Corpus/Edbrg 9/19/16—
A district court did not abuse its discretion when it ordered an insurer to all re-inspection files for its adjuster and co-defendant after the appraisal award was more than ten times the damages estimated by the adjuster.
Fifth Circuit Reverses and Remands Insurer Dispute Regarding Duty to Defend ExxonMobil in Environmental Damage Claims  
Federal Insurance Co. v. Northfield Insurance Co. 5th Cir 9/16/16—
Court finds that petition is unclear on timing of damage and type of damage, rendering Pollution Exclusion inapplicable to bar defense; also finds that "insured contract" exception to contractual liability exclusion applies.
District Court Reverses Course and Holds that Coverage Exists for Fire Loss at Insured's Restaurant  
Resie's Chicken & Waffles Restaurant v. Acceptance Indemnity Co. SD Tx 9/16/16—
Court finds that insured's failure to provide hard copies of books and business records irrelevant because they did not relate to policy coverage.
District Court Denies Plaintiffs' Motion to Amend Complaint Following Payment of Appraisal Award  
Cantu v. State Farm Lloyds SD Tx 9/15/16—
Court finds that insured unduly delayed seeking amendment and such amendment would have been futile.
Insurer prevails in dispute involving MCS-90 Endorsement  
KLLM Transport Services v. Hallmark County Mutual Insurance Co. Tx 4-San Antonio 9/14/16—
A policy and MSC-90 endorsement identifying the insured as Edwin A. Rodriguez d/b/a Total Transport does not cover a judgment against Total Transport Logistics, Inc.
More Recent Decisions
Section News
Recent Insurance Law Hot Topic Webinars Available Online

Did you miss the recent hot topic webinars hosted by the Insurance Law Section? The April, May & June 2016 webinars are all available for purchase online here via the Texas Institute of CLE website. For a limit... (Continued)

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