Texas High Court Dismisses Hotel Tax Liability Coverage Suit After Parties Settle

Mealey's (January 15, 2016, 12:16 PM EST) -- AUSTIN, Texas — The Texas Supreme Court dismissed an insurer’s appeal in a dispute over excess coverage for defense costs incurred in an underlying lawsuit alleging that the insured failed to fully remit hotel taxes, according to its Jan. 15 pronouncement (Illinois Union Insurance Co. v. Sabre Holdings Corporation, et al., No. 15-0716, Texas Sup.).

Various governmental entities sued Sabre Holdings Corp., Site 59.com LLC, Travelocity.com LP, Travelocity.com LLC and Sabre Inc. (collectively, Sabre), alleging that they failed to fully remit hotel taxes that were collected...
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