Insurers appeal, contending that the evidence is legally and factually insufficient to establish that Diatom Drilling Co., L.P. was damaged by the insurers. As the underlying judgment is most fairly characterized as a post-answer default judgment and because Diatom's participation in the underlying proceeding was so minimal that the proceeding cannot be fairly characterized as adversarial, the underlying judgment was not only not conclusive as to the damages suffered by Diatom, but is inadmissible as evidence of damages in the present action. The trial court's judgment is reversed and rendered. Amarillo Court of Appeals, No. 07-12-00090-CV, 07-24-2013.
Yorkshire Insurance Co., Ltd. v. Seger
Tex. App. Dist. 7
August 7, 2013