Wednesday, October 12, 2005
Is an insurer bound to defend its insured under a general commercial liability policy if the real claim is that the insured performed did its work in a “shoddy” manner? A federal district court, applying Texas law, held that the claim was basically for breach of contract, and thus that the insurer had no duty to defend. The U.S. Court of Appeals for the Fifth Circuit has certified the question to the Texas Supreme Court, asking for clarification.
Lamar Homes, Inc. v. Mid Continent Casualty Co., No. 04-51074, 2005 U.S. App. LEXIS 21441 (5th Cir. Oct. 3, 2005)