The Impact Of Carolina Casualty

Law360, New York (July 28, 2009, 12:34 PM EDT) -- A recent Texas decision has shed further light upon the scope of contract and insured-versus-insured exclusions and provides useful precedent for application of broad causation language.

A liability insurer that asserts a denial of liability coverage based upon a clear application of a policy provision early in the life of a case against an insured cannot assume that the matter will be concluded at that point, regardless of the soundness of the denial.

Once a coverage issue is clarified, plaintiff’s counsel will often seek to revise...
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