Fact Issues Remain On If Insured Breached Cooperation Clause, Federal Judge Holds

Mealey's (August 2, 2016, 1:26 PM EDT) -- HOUSTON — A cooperation clause applies to an insured’s conduct in declining a settlement in an underlying lawsuit over a faulty flex connector, a Texas federal judge ruled July 29, also finding that genuine issues of material fact exist regarding whether the insured breached that duty (Mid-Continent Casualty Co. v. Petroleum Solutions, Inc., et al., No. 09-0422, S.D. Texas; 2016 U.S. Dist. LEXIS 99896).

(Memorandum and order available. Document #69-160805-020Z.)

In 1997, Bill Head contracted with Petroleum Solutions Inc. (PSI) to construct and install an underground...
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