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Duke Energy Field Services Assets, L.L.C. v. National Union Fire Insurance Company of Pittsburgh, PA

Union Fire Insurance Co. of Pittsburgh When a subsidiary enters into a contract and that subsidiary is then merged into a parent corporation, the contracts of the subsidiary are treated as contracts with the parent.

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OPINION

Duke Energy Field Services Assets, L.L.C., appeals from a summary judgment rendered in favor of National Union Fire Insurance Company. Duke is the current owner of a gas plant in Port Arthur. Zaval-Tex Construction Company contracted with a former owner of the gas plant to provide workers for the plant. Zaval-Tex purchased a liability insurance policy from National Union. Rafael Chavez, an employee of Zaval-Tex, sued Duke for personal injuries. Duke requested that National Union defend it, and National Union refused. Duke sued National Union, seeking a declaratory judgment that National Union was obligated to defend it in Chavez’s suit. The question is whether Duke was an “additional insured” under the insurance policy issued by National Union to Zaval-Tex. The trial court granted National Union’s motion for summary judgment. The trial court based its summary judgment on its conclusion that Duke was not an additional insured within the terms of Zaval-Tex’s policy because there was no “written contract” between Duke and Zaval-Tex as required by National Union’s policy. *fn1

Zaval-Tex’s policy contains the following provision:

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