The Catwoman resurfaces, the Supremes score a new judge, insurance premiums remain up, Homebuilders score an interesting if not controversial victory and the Texas Longhorns score 49 unanswered points in a win on Saturday night. With all this news, Texas Update is truly blessed.
TEXAS SUPREME COURT GETS NEW JUDGE: TODAY, Gov. Rick Perry appointed former Houston trial judge David M. Medina to the Texas Supreme Court. Medina, 46, will fill a spot left open by Perry’s promotion of Wallace Jefferson to become Chief Justice, the first African American to serve in that post. Medina is a conservative who joins an all-republican and equally conservative supreme court. The Gov. still must fill one remaining open seat on the court.
TEXAS PREMIUM ROLLBACK LAW HELD UNCONSTITUTIONAL: YESTERDAY, a state trial judge here in Austin struck down a new state statute which empowered the Texas Department of Insurance to retroactively reduce Homeowners Insurance premiums. In August of 2003, the Insurance Department ordered premium cuts for Farmers, State Farm and 22 other companies, saying their rates were out of line with their losses. State Farm and Farmers then sued the state contending the new law was unconstitutional. The trial court agreed stating that the procedures and timetables in Senate Bill 14 (passed by the legislature in 2003) were indeed unconstitutional. Insurance company representatives were spotted after the hearing doing a celebratory Macarena dance on the courthouse lawn. The Insurance Department vowed to pursue other options to bring homeowners premiums down.
ACROSS STATE LINES: Los Angeles: Actor Jim Belushi has filed suit a $1 million suit against neighbor, actress Julie Newmar, alleging she is on a campaign of harassment to drive him from his home. He alleges she has defamed him by calling him a “peeping tom,” “a voyeur” and “sick.” Newmar, now 71, played Stupefying Jones in L’l Abner and Catwoman in the 1960’s Batman TV series. Although TxUp usually avoids becoming involved in neighborhood disputes (except our own, of course), we have to side with Newmar on this one. Belushi is, well, just Belushi, but Newmar is stupefying.
TEXAS COURT HOLDS CGL CARRIER HAS DUTY TO DEFEND HOMEBUILDER IN SUIT ALLEGING CONSTRUCTION DEFECTS: Adding to the continuing controversy and confusion, a Texas court of appeals has ruled that a CGL carrier has a duty to defend a homebuilder in a suit brought by a homeowner over construction defects. The homeowners sued the homebuilder claiming foundation problems and sought damages arising from the homebuilder’s negligence and malice, breach of contract and warranty, deceptive trade practices and fraud. The CGL carriers brought a declaratory judgment action against the homebuilder saying they had no duty to defend the underlying claims because of policy terms and exclusions. Essentially, the insurers argued that damages arising from a contract breach and an intentional tort cannot be recast as negligence claims and are not covered. The trial court agreed and granted summary judgment to the insurers. The Dallas Court of Appeals reversed and remanded the case. The court recognized that there were numerous conflicting court decisions in the state on this very issue, but stated that the pleading in the underlying case contained an alternative claim of negligence which invoked a duty to defend. Said the court: “The insurers ask this court to ignore the negligence allegations in the underlying statement of claims. However, Texas courts will not look beyond the pleadings and determine facts when the issue is duty to defend, as opposed to duty to indemnify.” TxUp expects the Texas Supreme Court to enter the fray and settle the conflict among the lower appellate courts on this issue. GEHAN HOMES, LTD, V. EMPLOYERS MUT. CAS. CO., (TEX. APP-DALLAS 2004).