Insurance Law Section
ILS Events Calendar

Jan

9

Insurance Law Section Council Meeting (Austin)

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

Apr

7

Insurance Law Section Council Meeting (Houston)

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

Jun

7

Insurance Law Section Council Meeting (San Antonio)

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

Jun

8

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
District Court Grants Motion to Remand in Commercial Property Dispute  
Sparky's Storage Solutions, Ltd. v. Lexington Insurance Co. ND Tx 12/2/16—
Court finds that factual allegations against adjuster sufficient to establish reasonable basis to recover.
Supreme Court Won't Reconsider Seger  
Seger v. Yorkshire Insurance Co. Tx Sup 12/2/16—
The Supreme Court will not reconsider its Seger decision in which it refused to consider the meaning of "actual trial" because the policy did not provide coverage.
Trial Court Abused Its Discretion in UIM Suit  
In re Geico Advantage Insurance Co. Tx 5-Dallas 12/1/16—
The court found that the trial court abused its discretion when it failed to sever extracontractual claims from claims against the allegedly underinsured driver.
Insurer's Rehearing Motion Granted, but Bad Faith Judgment Affirmed  
National Security Fire & Casualty Co. v. Lampson Tx 9-Beaumont 12/1/16—
The court granted an insurer's motion for rehearing in a bad faith case but then again ruled against the insurer on all points it raised in the appeal.
Fifth Circuit Affirms Summary Judgment for Insurer regarding Expiration of Statute of Limitations  
De Jongh v. State Farm Lloyds 5th Cir 11/30/16—
Court agrees that claim file closure constitutes denial and accrual of cause of action for breach of contract
Insurer Does Not Have to Produce Pleadings from Other Lawsuits  
In re Hallmark County Mutual Insurance Co. Tx 8-El Paso 11/30/16—
Trial court abused its discretion when it ordered an insurer to produce all petitions and complaints filed against it in the last ten years arising out of a denial to defend or to indemnify.
Fifth Circuit Denies Motion for Rehearing in Tesoro Corp Dispute with AIG  
AIG Specialty Insurance Co. v. Tesoro Corp. 5th Cir 11/29/16—
Court denies belated request for certification of question of how discovery rule applies to alleged mistake in naming insured on an insurance policy
Court Denies Venue Transfer in Underinsured Motorist Case  
Spencer v. Allstate Insurance Co. ED Tx 11/22/16—
Court rules that venue in Marshall Division was more appropriate for underinsured motorist case than Tyler Division.
Court Grants Motion to Remand in Residential Hail Claim  
Jimenez v. Allstate Texas Lloyd's SD Tx 11/21/16—
Court holds that allegations against in-state adjuster were sufficient to state claim for relief.
Insurers Prevail in Coverage Dispute Arising Out of Deepwater Horizon Spill  
Houston Casualty Co. v. Anadarko Petroleum Corp. Tx 9-Beaumont 11/17/16—
A Texas appellate court has reversed and rendered judgment for insurers after finding that the insured's policy construction was unreasonable.
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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