Reinsurer Must Litigate Storm Damage Coverage Action, Texas Appellate Court Rules

EASTLAND, Texas — A Texas appellate court has upheld a trial court’s refusal to dismiss or stay a school district’s lawsuit against a reinsurer in a dispute over coverage for wind and hail damage, ruling the court is bound by a federal court’s denial of the reinsurer’s motion to stay in related litigation.

In a May 25 opinion, the Texas Court of Appeals, 11th District, added that the trial court’s decision was proper because the school district, which is a nonsignatory to the reinsurance certificate, is not seeking a direct benefit under the certificate; therefore, it is not bound by …