Texas High Court Finds Northfield Exception To 8-Corners Rule Is Permissible

Mealey's (February 15, 2022, 8:59 AM EST) -- AUSTIN, Texas — The exception to the “eight-corners rule” established by the Fifth Circuit U.S. Court of Appeals in Northfield Ins. Co. v. Loving Home Care, Inc. “is permissible under Texas law provided the extrinsic evidence (1) goes solely to the issue of coverage and does not overlap with the merits of liability, (2) does not contradict facts alleged in the pleading, and (3) conclusively establishes the coverage fact to be proved,” the Texas Supreme Court ruled Feb. 11, answering a certified question from the Fifth Circuit....