Texas Justices Narrow Contract Exclusion's Scope In Ewing

Law360, New York (January 17, 2014, 2:11 PM EST) -- The Texas Supreme Court on Friday sided with Ewing Construction Co. Inc. in a faulty construction coverage dispute closely watched by contractors and insurers across the country, limiting the scope of an exclusion for liabilities that builders assume through contracts.

Answering a question certified by the Fifth Circuit, the Texas high court ruled the contractual liability exclusion, found in many commercial general liability policies, is not triggered by faulty construction suits when a general contractor agrees in a contract to perform construction work in a "good...
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