Texas Supreme Court
Evanston Insurance Company, Petitioner v. Atofina Petrochemicals, Inc., Respondent
June 13, 200851 Tex. Sup. Ct. J. 1018
Summary
The Texas Supreme Court held that the umbrella policy covers ATOFINA even for its sole negligence, that the insurer is bound to pay the $5.75 million settlement amount, and that article 21.55 does not permit penalties or attorney’s fees; it affirmed the appellate court on coverage and payment, reversed on damages and fees, and remanded for further proceedings. Justice HECHT, concurring in part and dissenting in part, agreed on coverage and payment but disagreed that the insurer is estopped from contesting the settlement’s reasonableness.