Don’s Building Supply, Inc., Appellant v. Onebeacon Insurance Company, as Assignee of Potomac Insurance Company Of…

Summary

The Texas Supreme Court answered two certified questions from the Fifth Circuit concerning an occurrence‑based commercial general liability policy. It held that property damage occurs when the physical injury to tangible property happens, not when the damage is discovered, and that a duty to defend is triggered when pleadings allege such damage occurred during the policy period, even if undiscoverable until later. The Court rejected the “manifestation” and “exposure” rules as inconsistent with the policy language.