Supreme Court of Texas

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Pine Oak Builders, Inc. v. Great American Lloyd's Ins. Co., 060867

In case against defendant-insurers for not breach of insurers' defense obligations for not defending plaintiff-homebuilders in suits by homeowners, grants of summary judgments are affirmed in part and reversed in part where: 1) court of appeals' holding that the Prompt Payment of Claims statute did not apply to insurer's breach of its duty to defend under a liability policy is affirmed where Lamar Homes, Inc. v. Mid-Continent Cas. Co. made clear that the statute did not apply to such situations; 2) the actual-injury rule should be applied to any remaining disputes about whether the property-damage claims fall within the terms of the insurance policies; and 3) defendant-insurer's duty to defend was not triggered by the petition against plaintiff.

Appellate Information

  • Decided 02/13/2009
  • Published 02/13/2009



  • Supreme Court of Texas


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