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Dallas National Insurance Co. v. Sabic Americas Inc.

The appellant, Dallas National Insurance Co., contends that the trial court erred in declaring that it was obligated to defend and reimburse Sabic Americas Inc. under general liability insurance policies. The pleadings in the underlying suits allege facts sufficient to show property damage was caused by an occurrence (alleged MTBE contamination) that took place between July 2003 and July 2007; the known-loss doctrine does not bar coverage; even if some of the claims alleged in the underlying suits are excluded from coverage by the "expected or intended" provision, the inclusion of other claims that might be covered triggers the duty to defend; because the plaintiffs are not government authorities, the pollution exclusions do not preclude Dallas National's duty to defend Sabic in the underlying suits. The trial court's summary judgment is affirmed. Houston's 1st Court of Appeals, No. 01-08-00758-CV, 03-10-2011.

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OPINION

Seeking a determination of its rights and obligations under four commercial general-liability insurance policies it had issued to appellee Sabic Americas, Inc., appellant Dallas National Insurance Company filed a declaratory-judgment action. Sabic filed a counterclaim seeking, inter alia, a declaratory judgment that the four policies obligated Dallas National to defend and indemnify it in eight underlying lawsuits. With both parties’ cross-motions for summary judgment before it, the trial court granted Sabic’s motion and ordered Dallas National to reimburse Sabic for any defense costs it incurred as a result of the underlying lawsuits. On appeal, Dallas National contends that the trial court erred in declaring that it was obligated to defend and reimburse Sabic. We affirm.

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