Texas High Court Declines to Look Outside '8 Corners'

AUSTIN - The Texas Supreme Court applied several recent decisions in resolving a dispute over defense coverage for a homebuilder, but refused to look outside the policies or underlying complaints to order an insurer to defend construction defect claims. Pine Oak Builders Inc. v. Great American Lloyds Insurance Co., No. 06-0867 (Texas Sup. Ct.).

The high court on Feb. 13 affirmed lower court decisions ordering Great American Lloyds Insurance Co. to defend four lawsuits alleging improper installation of Exterior Insulation and Finish System siding, but also affirmed judgment for a second insurer whose policies excluded EIFS siding claims.

In all, …