Texas Supreme Court Takes Up Contractual Liability Issue, Again

One of the most fascinating aspects of writing about insurance litigation is that often issues that we discuss seem to be “finally” decided, only to reappear again. For instance, previously for Insurance Journal we discussed a landmark case involving the viability of the contractual liability exclusion in a column just a little over a year ago. At that time, the Texas Supreme Court in Gilbert Texas Construction, L.P. v. Underwriters at Lloyd’s London, upheld the application of the exclusion in a construction defect case. This decision was rightly considered a groundbreaking decision because it reinvigorated the use of the exclusion and also included a discussion of the estoppel doctrine.