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A Case That Could Impact Insurers' Duty to Defend Is Headed to Texas Supreme Court

A court of appeals ruled an excess policy did not unambiguously exclude defense costs for the insured, a Houston oil drilling services company involved in a personal injury settlement.

July 15, 2024 at 03:23 PM

3 minute read

Insurance Law

Adolfo Pesquera

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What You Need to Know

A Houston energy firm faces a challenge from a Liberty Mutual Insurance subsidiary that was found at fault when it refused to pay defense costs.
An insurance industry amicus curiae claims the lower court ruling has far reaching negative consequences.
The insurance company appellant wants the Texas Supreme Court to recognize an exception in excess insurance policies.

Houston-based Patterson UTI Energy Inc. is facing a challenge from a Liberty Mutual Insurance Companies subsidiary that was found at fault when it refused to pay defense costs in a lawsuit.

The Fourteenth Court of Appeals upheld a Harris County trial court’s dismissal of the case in Patterson’s favor, but the Texas Supreme Court has agreed to hear the case.

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