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A Case That Could Impact Insurers’ Duty to Defend Is Headed to Texas Supreme Court

By 4 Mins Read



Can Insurers Carve Out Exception to Obligation to Pay Defense Costs? | Texas Lawyer
















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https://www.law.com/texaslawyer/2024/07/15/a-case-that-could-impact-insurers-duty-to-defend-is-headed-to-texas-supreme-court/

Patterson UTI walking rig. Courtesy: Patterson UTI Energy Co.

A court of appeals ruled an excess policy did not unambiguously exclude defense costs for the insured, a Houston oil drilling services company involved in a personal injury settlement.

July 15, 2024 at 03:23 PM

3 minute read

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What You Need to Know

  • A Houston energy firm faces a challenge from a Liberty Mutual Insurance subsidiary that was found at fault when it refused to pay defense costs.
  • An insurance industry amicus curiae claims the lower court ruling has far reaching negative consequences.
  • The insurance company appellant wants the Texas Supreme Court to recognize an exception in excess insurance policies.

Houston-based Patterson UTI Energy Inc. is facing a challenge from a Liberty Mutual Insurance Companies subsidiary that was found at fault when it refused to pay defense costs in a lawsuit.

The Fourteenth Court of Appeals upheld a Harris County trial court’s dismissal of the case in Patterson’s favor, but the Texas Supreme Court has agreed to hear the case.

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