Texas Court Requires Insurer to Defend GC Despite Breach of Contract Exclusion

Businessmen arguing over contracts

This case provides a helpful clarification that Texas construes breach of contract exclusions narrowly.

December 19, 2018
Ashley L. Cooper - Saxe Doernberger & Vita, P.C.

In Mt. Hawley Insurance Co. v. Slay Engineering, et al.,1 a Texas federal court ruled in favor of a general contractor, finding that its insurer had a duty to defend it in a construction defect case filed by the owner. The decision adds more clarity to the interpretation of the subcontractor exception to the “Damage to Your Work” exclusion as well as the Breach of Contract exclusion, which has been the subject of several cases coming out of Texas over the past decade.

Ms. Cooper may be contacted at alc@sdvlaw.com



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