Texas And The Eight-Corners Rule

Law360, New York (February 23, 2009, 12:00 AM EST) -- On Feb. 13, in Pine Oak Builders Inc. v. Great American Lloyds Insurance Co., the Texas Supreme Court again declined to recognize an extrinsic-evidence exception to the eight-corners rule in duty to defend cases.

The eight-corners rule provides that a court must determine an insurer’s duty to defend its insured based only on the claims alleged in the petition and the language of the policy. If the petition fails to allege facts that fall within the scope of coverage, an insurer has no duty to defend...
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