5th Circ. Favors Homeowners In Defect Exclusion Fight

Law360, New York (October 29, 2014, 5:20 PM EDT) -- The Fifth Circuit handed a win to two homeowners on Wednesday by revisiting an earlier ruling that Mid-Continent Casualty Co. correctly applied a contractual liability exclusion, after the homeowners argued that the earlier ruling conflicts with a Texas Supreme Court decision that narrowed the exclusion's scope.

A unanimous three-judge panel granted a petition for rehearing filed by homeowners Doug and Karen Crownover, reversing an earlier entry of summary judgment in favor of Mid-Continent and ordering that summary judgment be granted in favor of the Crownovers. 

The appeals court held in June that Mid-Continent correctly applied a contractual liability exclusion in the...

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