Evanston Insurance Company, Petitioner v. Atofina Petrochemicals, Inc., Respondent

Summary

The Texas Supreme Court held that the commercial umbrella policy issued to Triple S provides coverage to ATOFINA as an additional insured, even for liabilities arising from ATOFINA's sole negligence, and that Evanston must pay the $5.75 million portion of the Jones settlement. The Court reversed the appellate court’s award of statutory penalties and attorney's fees under article 21.55, finding ATOFINA not entitled to such damages, and remanded for further determination of settlement reasonableness and other claims. Justice HECHT, joined by Justice JOHNSON, concurred in part and dissented in part, disagreeing with the majority’s application of the Block estoppel rule.