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
Court Dismisses Widow's Claim Against Life Insurer  
Hendrix v. Wal-Mart Stores SD Tx 8/28/16—
Court finds claims are barred by limitations and the life insurance policy was cancelled.
Court Denies Insured's Motion to Remand and Grants Insurer's Motion for Partial Dismissal  
Mt. Olive Missionary Baptist Church v. Underwriters at Lloyd's London SD Tx 8/26/16—
Court finds adjuster had been improperly joined, but dismisses fraud and misrepresentation claims under DTPA and Insurance Code without prejudice for refiling amended complaint.
Appellate Court Reverses and Remands Workers' Comp Case  
American Zurich Insurance Co. v. Samudio Tx 1-Houston 8/25/16—
A district court's rulings in a workers comp case have been reversed and remanded for a second time after the district court failed to comply with the Texas Supreme Court mandate issued in an earlier appeal of the same case.
Second Reversal and Remand of Coverage Case Arising out of Construction Defect Claim  
Great American Lloyds Insurance Co. v. Vines-Herrin Custom Homes, LLC Tx 5-Dallas 8/25/16—
The Court of Appeals says the trial court erred when it failed to allocate indemnity costs arising out of an underlying construction defect claim between triggered insurers.
Court Adopts Magistrate's Recommendation Remanding Case  
Exxon Mobil Corp. v. St. Paul Fire and Marine Insurance Co. ED Tx 8/24/16—
Court finds no diversity of citizenship exists.
Gregg County District Court Abused Its Discretion in Bad Faith Lawsuit  
AAA Texas County Mutual Insurance Co. v. Brabham Tx 12-Tyler 8/18/16—
An appellate court has found that a bifurcated trial is insufficient to cure the prejudice to an insurer when the insurer is sued for both breach of contract and bad faith.
Third-Party Claimant Has Standing to Sue Insurer For Insurance Code Violations  
Letot v. United Services Automobile Association Tx 5-Dallas 8/17/16—
An appellate court has found that the tender of a payment is not the equivalent of a payment under the salvage provisions of the Texas Transportation Code resulting in potential liability of an insurer to a third party under the Texas Insurance Code.
Court Dismisses Insurer's Action to Enforce Arbitrator's Subpoena  
Zurich Insurance PLC v. Ethos Energy (USA) LLC SD Tx 8/16/16—
Court determines it lacks subject matter jurisdiction.
Court Grants Homeowner Insurer's Motion for Judgment on Pleadings  
Crofcheck v. National Surety Corp. SD Tx 8/16/16—
Court determines exclusions in homeowner's policy preclude coverage for malicious Yelp review published by insured dentist against competitor's dental practice.
District Court Allows Interpleading of Life Insurance Proceeds, Finds Insurer Entitled to Recovery of Attorneys' Fees  
Jackson National Life Insurance Co. v. Dobbins ND Tx 8/15/16—
Court discharges life insurer of all liability related to proceeds, but requires a separate fee application be filed.
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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