The Fifth Circuit Further Clarifies Service Contract and Insurance Interplay Under Texas Law

Originally published by David W. Leefe, William W. Pugh and John Almy.

In March 2013, the federal Fifth Circuit ruled in the Deepwater Horizon litigation, under Texas law, that the scope of additional insured coverage was to be determined based only upon the four corners of the policy and that specific reference to an underlying contract or some other express wording in the policy was necessary to incorporate coverage limitations from the contract into the policy. The Fifth Circuit subsequently withdrew its opinion and certified the key issues to the Texas Supreme Court.

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