Texas High Court Finds CGL Coverage for Defect Claims

AUSTIN, Texas - Answering a question posed by the 5th Circuit Court U.S. Court of Appeals, the Texas Supreme Court said Aug. 31 that unintended construction defects may trigger an insurer's duty to defend the builder when the alleged damages are only to the builder's own product. Lamar Homes Inc. v. Mid-Continent Casualty Co., No. 05-0832 (Texas Sup. Ct.).

The court said in its 6-3 majority opinion that it could not rule on whether Mid-Continent Casualty has a duty to indemnify Lamar Homes Inc. as that issue must be resolved by the factfinder.

Lamar sought a defense and indemnification from …