Texas High Court: Defective Flanges Alone Did Not Physically Injure Diesel Units

Mealey's (December 4, 2015, 2:18 PM EST) -- AUSTIN, Texas — In response to four questions certified from the Fifth Circuit U.S. Court of Appeals, the Texas Supreme Court on Dec. 4 found that the terms “physical injury” and “replacement” are not ambiguous as incorporated into the “your product” or “impaired property” exclusions of a commercial general liability insurance policy and the installation of faulty flanges alone did not physically injure diesel units in a coverage dispute arising from the defective flanges (U.S. Metals, Incorporated v. Liberty Mutual Group, Incorporated, et al., No. 14-0753,...
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