5th Circuit Court of Appeals News

5th Circuit: Builder’s Risk Insurer May Recoup Payment for Damage to Docking Facility

A doctrine that prevents parties from seeking reimbursement for intangible economic losses caused by maritime negligence doesn’t prevent an insurer from recouping $1.7 million it paid to a policyholder for damage to a structure used to moor boats, a panel …

U.S. Govt. Asks Court to Immediately Lift Stay on COVID Vaccine Rule

The U.S. government asked a federal appeals court to immediately lift a court-ordered stay on a sweeping workplace COVID-19 vaccine rule to avoid “enormous” harm to public health, or alternatively to allow a masking-and-testing requirement, according to a court filing. …

‘Ambiguous’ Flood Deductible May Cost Carriers That Insured New Orleans Hotel

The redevelopment of the historic Jung Hotel and Residences in downtown New Orleans flooded four times before renovations were complete. The two insurers that issued a builder’s risk policy for the project thought they had limited their risk, but a …

5th Circuit: Cal-OSHA Has Jurisdiction Over Texas Trucking Co. for Work Safety Violations

A federal appellate court rejected a Texas trucking company’s attempt to force a California state agency to pursue a $6,180 fine for workplace safety violations in a Texas court. Bulkley & Associates filed suit twice to challenge the California Department …

5th Circuit: Insurer Liable for Harvey Damage Despite ‘Creative’ Policy Language and ‘Legal Gotcha’

While Hurricane Harvey dumped 60 inches of rain on the Houston area in August 2017, the authority that operates the Lake Conroe Dam opened the floodgates to release water at a rate almost equal to the flow over Niagara Falls. …

5th Circuit: Oil Platform Worker’s Longshore Act Claim Barred by Exclusive Remedy

Exclusive remedy bars a lawsuit filed by a mechanic against the owner of an offshore oil platform where he worked, even though he was employed by different company, a federal appellate court ruled. The 5th Circuit Court of Appeals rejected …

5th Circuit Reasserts That Bad Faith Not Necessary to Win Interest Penalty Against Texas Insurers

A Houston plaintiff’s attorney defeated State Farm Lloyd’s for the fourth time on the same issue, this time coming away with a federal appellate court ruling that policyholders don’t have to prove that their insurer acted in bad faith in …

5th Circuit: Carrier Must Defend Against Claim Despite Policy Exclusion

Texas law requires an insurer to defend the grandparents of a 10-year-old boy who was killed while driving their all-terrain vehicle against a negligence lawsuit, even though the carrier says neither the boy nor the crash was covered by its …

Economic Loss Rule Bars Insurer Recovery for Utility’s Damaged Turbine

The economic loss rule established by Texas courts bars recovery for an insurance company that sought nearly $8 million in damages from a company that installed faulty software that led to extensive damages to an electric utility’s generating equipment, a …