On certified questions from the Fifth Circuit, the Texas Supreme Court limited the scope of the contractual liability exclusion to situations where the liability is enlarged beyond its duty to exercise ordinary care in fulfilling its contract. In this matter, the policyholder contracted to construct certain additions to a school, including a tennis court. The contract required the policyholder to perform the work in a good and workmanlike manner. The tennis court was unusable for its intended purpose and the policyholder was sued. Its carrier …
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Written Construction Contract Clarifies Competing Additional Insured Endorsements
The plaintiff, Lamp Incorporated (Lamp), brought a declaratory judgment action against Navigators Insurance Company (Navigators), seeking a declaration that Navigators breached its duty to defend Lamp in an underlying personal injury lawsuit stemming from a construction site accident (underlying lawsuit). Navigators filed a third-party complaint against West Bend Mutual Insurance Company (West Bend) seeking a declaration that West Bend, and not Navigators, provided primary, non-contributory coverage to Lamp and owed the duty to defend Lamp in the underlying lawsuit. Navigators also sought a declaration that …
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