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Click here for the full text of this decision FACTS:A group of insurance carriers who insure physicians are defending doctors sued for using breast implants manufactured by Dow Corning. Another group of carriers insures Dow. Each Dow policy has an additional insured endorsement for “vendors,” but only with respect to “distribution or sale in the regular course of the Vendor’s business.” In 1994, the Dow insurers and the physician insurers signed an interim agreement whereby the Dow insurers would reimburse the physician insurers for a share of the physicians’ defense in the lawsuits. Zurich Insurance Co., a Dow insurer that did not join the interim agreement, sued the physician insurers for a declaration of their obligation towards the physicians. The 3rd Court of Appeals in Austin eventually affirmed the trial court judgment, holding as a matter of law that the physicians were not insureds under the vendor endorsement. In 1997, the physician insurers then brought this declaratory judgment action, seeking a declaration on whether the Dow insurers had a duty to defend them and seeking reimbursement for costs associated with past defense. The trial court granted summary judgment for the Dow insurers, and the physician insurers appeal. HOLDING:Reversed and remanded. Although the words “in the regular course of business” are not found in the master petition for this multidistrict litigation, the physician insurers specifically allege that the physicians were sellers of Dow’s breast implants. Interpreting the allegations liberally, and resolving any doubts in favor of the physicians, the court finds it was error for the trial court to conclude that, as a matter of law, the physicians are not additional insureds under the vendor endorsements. The court adds without discussion that collateral estoppel does not bar the physician insurers’ claims. OPINION:Vance, J.; Gray, C.J., Vance and Reyna, JJ.

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