Texas applies the “cause” test to determine the number of accidents or occurrences, but its emphasis on the “liability-triggering event” requires an analysis of intervening causes. The Fifth Circuit Court of Appeals doubled-down on its focus on the liability-triggering event, reversing the trial court and finding a truck driver’s negligent operation of his vehicle that caused multiple collisions (four autos and a toll plaza booth) was one accident for purposes of liability insurance in Evanston Ins. Co. v. Mid-Continent Cas. Co., —F.3d.—, No. 17-20812, 2018 WL 6037507. The court acknowledged that the analysis espoused in Pincoffs[1] and Goose Creek[2] (i.e., count the number of acts by the insured that give rise to liability) is incomplete because it does not address…
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From Birdseed to Crop Dusting, Liability-Triggering Event Determines Number of Occurrences
Posted in Bad Faith
Texas Court: No Prejudice Required to Deny for Late Reporting Under a Claims-Made Policy
This summer in Nicholas Petroleum, Inc. v. Mid-Continent Cas. Co., 2015 WL 4456185, 2015 Tex. App. LEXIS 7489 (Tex.App., Jul. 21, 2015), a Dallas panel of Texas’ intermediate level appellate court rejected policyholder arguments that the insurer was required to show prejudice before denying coverage under a claims-made policy based on the insured’s untimely reporting of the claim. Nicholas Petroleum owned and operated a gas station in Dallas, Texas. Mid-Continent had issued Nicholas a Pollution Liability and Environmental Damage Policy that contained a condition precedent to coverage stating: “In the event of a Claim under Coverage A, the Insured shall give us written notice as soon as possible but in any event no later than thirty (30) days after receipt…
