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The U.S. Court of Appeals for the Fifth Circuit today affirmed an award in favor of a CGL carrier, represented by Thompson Coe attorneys, against another CGL insurer for reimbursement of defense costs and a settlement paid in an underlying construction-defect lawsuit on behalf of their mutual insured. The defendant insurer appealed the judgment of the District Court, asserting that its subsidence exclusion and exclusion for “continuous and progressive damage” precluded coverage for the settlement by Thompson Coe’s client. It had also asserted that the Texas Supreme Court’s decision in Mid-Continent Insurance Co. v. Liberty Mutual Insurance Co. barred any recovery under subrogation for the settlement payment. The attorneys argued successfully to the Fifth Circuit that the evidence they adduced at trial supported the judgment in their client’s favor, and that their recovery was not barred as a matter of law. A link to the Fifth Circuit’s published opinion can be found here.

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