Lyda Swinerton Builders, Inc. v. Oklahoma Surety Co., No. 16-20195 (5th Cir. 2018)
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The Fifth Circuit withdrew its prior opinion and substituted the following opinion in light of the Texas Supreme Court's opinion on rehearing in USAA Texas Lloyds Co. v. Menchaca, 545 S.W.3d 479 (2018). This case involved issues of Texas law relating to an insurer's duty to defend and the damages that an insured may recover when an insurer beaches that duty.
The court affirmed the district court's grant of summary judgment in LSB's favor on the duty to defend and OSC's breach of that duty and held that there were no genuine issues of material fact and LSB was entitled to judgment as a matter of law. The court also affirmed the district court's denial of OSC's motion for partial summary judgment based on the anti-stacking rule; affirmed summary judgment in favor of LSB under the Prompt Payment Claims Act; reversed the district court's judgment with respect to LSB's Chapter 541 of the Texas Insurance Code claim and remanded for further proceedings in light of Menchaca; and reversed the district court's judgment to the extent it imposed an 18% statutory penalty after the date of judgment.
This opinion or order relates to an opinion or order originally issued on December 12, 2017.
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