State Farm Fire and Casualty Company, Petitioners v. Durwood Vaughan and Shellie Vaughan

Summary

The Texas Supreme Court held that State Farm's business pursuits exclusion in the homeowners policy barred coverage for the Vaughans' claims arising from an in‑home day‑care business, found the policy unambiguous, and affirmed the trial court's summary judgment for State Farm, reversing the Court of Appeals. The decision rested on a textual analysis of the exclusion and its exception, and on the application of Texas summary‑judgment standards.