Texas Supreme Court Cleans Up Fifth Circuit’s Mess

Texas decision limits contractual obligation exclusion. See attached article discussing important construction defect coverage decision.

Green Building/Construction Law

Construction In a decision released about seven weeks ago (sorry, I’ve had things to do!), the Texas Supreme Court held that a general contractor’s contractual obligation to perform its work in a good and workmanlike manner would not trigger the contractual liability exclusion in its policy. Ewing Const. Co. v. Amerisure Ins. Co. , ___ S.W.3d ___, No. 12-0661, 2014 WL 185035, *1 (Tex., Jan. 17, 2014). Apologies in advance, as this post will only be of interest to the lawyers (even that may be optimistic)…

Background: Ewing Construction Company entered into a contract with a school district. The school district eventually filed a construction defect action in Texas state court. Amerisure, Ewing’s insurer, denied Ewing’s request for a defense and indemnification, relying on the policy’s contractual liability exclusion, which stated there would be no coverage for “‘property damage’ for which [Ewing] is obligated to pay damages by reason of the…

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