Liberty Surplus Insurance Corporation and Commerce & Industry Insurance Company v. Exxon Mobil Corporation
14-14-00254-CV
Tex. App.Jan 15, 2015Background
- This appeal concerns denial of additional insured coverage for ExxonMobil under Wyatt's primary and excess liability policies after an explosion at ExxonMobil's Baytown refinery.
- ExxonMobil settled the underlying suit by injured workers, McBride v. Exxon Mobil Corp., and the case proceeded against Wyatt.
- The underlying jury verdict found Wyatt not negligent and ExxonMobil solely responsible; a new-trial order was issued.
- ExxonMobil sought indemnity coverage in a separate coverage action; the trial court granted summary judgment for ExxonMobil without reasoning.
- Wa y t t was later the subject of a mandamus proceeding, with the Wyatt court conditionally reinstating the underlying jury verdict, though final judgment remained pending.
- C&I submits a post-submission letter brief and Wyatt opinion as new authority arguing ExxonMobil failed to prove liability arose out of Wyatt's operations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ExxonMobil’s liability arose out of Wyatt’s operations for coverage purposes | C&I: liability arose from ExxonMobil’s own design/operations, not Wyatt | ExxonMobil: liability arose out of Wyatt’s operations under the policy terms | ExxonMobil failed to conclusively prove the requisite causal link |
| Whether summary judgment was appropriate given need for final underlying-liability adjudication | C&I: final judgment in underlying suit is necessary before coverage ruling | ExxonMobil: summary judgment valid to determine coverage now | Final liability adjudication is necessary; summary judgment premature |
| Whether a stay of the coverage action is warranted pending final underlying judgment | C&I: Court should stay the coverage action until/ unless underlying final judgment | ExxonMobil: stay not required, resolve coverage now | Stay may be appropriate pending final underlying judgment |
Key Cases Cited
- Evanston Ins. Co. v. A TOFINA Petrochemicals, Inc., 256 S.W.3d 660 (Tex. 2008) (final liability determination necessary to assess insurer’s coverage)
- Rhone-Poulenc, Inc. v. Steel, 997 S.W.2d 217 (Tex. 1999) (without conclusive proof of causation, no insured-tip coverage)