Gastar Beats Denial Of Coverage For Mare Investment Suits

Law360, Houston (July 16, 2013, 6:30 PM EDT) -- A Texas appeals court said Tuesday that subsidiaries of HCC Insurance Holdings Inc. and Axis Capital Holdings Ltd. could not rely upon an ambiguous policy exclusion to deny coverage to Gastar Exploration Ltd. for securities fraud claims involving thoroughbred mare investments.

The Fourteenth District Court of Appeals ruled that seven suits Gastar settled over an alleged mare-leasing scheme are arguably covered by primary and excess corporate liability insurance policies issued by U.S. Specialty Insurance Co. and Axis Insurance Co., rejecting the insurers’ attempt to dodge paying...
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