David Taubenfeld in Texas Lawyer: Appellate Lawyer of the Week: City Wins Insurance-Coverage Suit

12/2/2013


David Taubenfeld's municipal client bought insurance to defend against civil litigation. But it took Taubenfeld's arguments at U.S. Court of Appeals for the Fifth Circuit before the city could get the benefit of that bargain.

The background to the Fifth Circuit's Nov. 14 decision in The City of College Station v. Star Insurance Co. is as follows.

Star Insurance Company (SIC) refused to defend or indemnify its insured, the city of College Station, in a lawsuit brought by a real estate investment trust (REIT) that is not party to the appeal.

The city settled the underlying litigation with the REIT and sued SIC to recover defense costs, indemnification and statutory penalty interest in the U.S. District Court for the Southern District of Texas. Applying Texas law, the trial court concluded that SIC had no duty to defend or indemnify the city in the litigation. The city appealed the decision to the Fifth Circuit.

Excerpted from the Texas Lawyer, December 2, 2013. To view full article, click here (subscription required).

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