Texas Judge Applies Objective Standard in Dispute Over 'Occurrence'

BROWNSVILLE, Texas - A manufacturing firm seeking insurance coverage for a $38 million fraud verdict said it will appeal a federal judge's decision that 5th Circuit precedent required him to apply an objective standard in determining whether manufacturing defects constituted an "occurrence" warranting insurance coverage. National Union Fire Insurance of Pittsburgh, Pa. v. Puget Plastics Corp., et al., No. B-05-050 (S.D. Texas).

Puget Plastics Corp. filed the notice of appeal on Sept. 14, asking the 5th Circuit to overturn a judgment by the U.S. District Court for the Southern District of Texas in favor of National Union Fire Insurance of …