Texas Justices' Exxon Ruling Comes With Catch For Insurers

Law360, Los Angeles (December 7, 2015, 9:27 PM EST) -- The Texas Supreme Court’s ruling Friday that a pipe maker isn’t covered for the removal of defective parts in Exxon refinery equipment is a win for insurers, but experts say the court’s finding that the policyholder is covered for other components damaged when the shoddy parts were taken out broadens insurers’ duty to defend in similar cases.

In a multifaceted opinion answering questions certified from the Fifth Circuit, the state high court held that pipe manufacturer U.S. Metals Inc. isn't entitled to indemnity under its commercial general liability, or CGL, policy with Liberty Mutual Group Inc. for the cost to remove...

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