In Richards v. State Farm Lloyds, the Texas Supreme Court answered a certified question from the Fifth Circuit: “According to one federal district court applying Texas law, the eight-corners rule does not apply unless the policy includes language requiring the insurer to defend ‘all actions against its insured no matter if the allegations of the suit are groundless, false or fraudulent.’ The Fifth Circuit has asked whether the district court’s ‘policy language exception’ to the eight-corners rule is ‘a permissible exception under Texas law.’ As explained below, we answer that it is not.” No. 19-0802 (March 20, 2020).

Please follow and like us: