Insurance Law Section
ILS Events Calendar



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
Supreme Court Will Not Reconsider Discovery Ruling  
In re National Lloyds Ins. Co. Tx Sup 2/17/17—
The Supreme Court's decision that an insurer's handling of similar claims does not fall within the scope of discovery in a bad faith lawsuit will stand.
Court Dismisses Extraneous Claims Filed by ERISA Insurer  
Connecticut General Life Ins. Co. v. Elite Center for Minimally Invasive Surgery, LLC SD Tx 2/15/17—
Court holds that ERISA carrier failed to adequately allege several equitable causes of action.
Insurer Prevails in Mandamus  
In re Allstate Mutual Insurance Co. Tx 14-Houston 2/9/17—
A trial court abused its discretion when it refused to abate the trial on extra-contractual claims against the insurer until after the trial on the insured's breach of contract claims.
Appellate Court Affirms JNOV for Insurer  
Triyar Companies LLC v. Fireman's Fund Insurance Co. Tx 14-Houston 2/9/17—
An appellate court found that a trial court properly granted a JNOV for the insurer on a jury's bad faith finding when the jury also found that the insurer had paid more than it owed under the policy.
Court Dismisses State Law Extra-Contractual Claims in Flood Policy Case  
Ling v. Farmers Insurance Group SD Tx 2/2/17—
Court holds that state law extra-contractual claims are not available in suit under NFIP flood policy.
District Court Denies Request for Attorneys' Fees Filed before Ruling on Merits  
North Cypress Medical Center Operating Co. v. Cigna Healthcare SD Tx 1/31/17—
Court denies request for attorneys' fees filed before it had considered merits of breach of contract argument
Fifth Circuit Affirms Judgment in Insurer vs Insurer Dispute, Requiring Insurers to Share Defense Costs Evenly  
Colony National Insurance Co. v. United Fire and Casualty Co. 5th Cir 1/31/17—
Court finds that policies covered the same insured and insurer that provided defense was entitled to reimbursement of half its costs from other insurer.
District Court Grants Motion to Remand Property Insurance Dispute to State Court  
Kris Hospitality LLC d/b/a Days Inn v. Tri-State Insurance Co. of Minnesota WD Tx 1/31/17—
Court finds that insured pleaded sufficient allegations to support claims against non-diverse adjuster and adjusting firm.
Supreme Court Finds Insurer's Construction of Its Policy is Unreasonable  
Nassar v. Liberty Mutual Fire Insurance Co. Tx Sup 1/27/17—
Court holds that a homeowners' policy unambiguously provides coverage for a damaged fence under the dwelling coverage when the fence is attached to the house.
Court of Appeals Affirms Judgment for Bondsman  
Ackle v. Seneca Insurance Co. d/b/a Eydie's Bail Bonds Tx 2-Ft Worth 1/26/17—
An appellate court has found that a trial court had sufficient evidence to find that a bail bond company was entitled to all monies paid under a bails bond contract.
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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