Texas Supreme Court Reinstates Contractor's Indemnity Claim

AUSTIN, Texas - The Texas Supreme Court has ruled that a commercial insurer's duty to indemnify an additional insured is not automatically foreclosed by the lack of a duty to defend. D.R. Horton-Texas, Ltd. v. Markel International Insurance Co. Ltd., No. 06-1018 (Texas Sup. Ct.).

The high court's Dec. 11 opinion did not address the additional insured's challenge to the "eight-corners doctrine" - which precludes review of materials outside the underlying complaint and the insurance contract at issue - but ordered the trial court to consider the remaining indemnification issues on remand.

Homeowners James and Cicely Holmes sued petitioner D.R. …