Fairfield Insurance Company, Appellant v. Stephens Martin Paving, Lp; Carrie Bennett

Summary

The Texas Supreme Court answered a certified question from the Fifth Circuit, holding that Texas public policy does not prohibit a workers' compensation and employer's liability insurer from indemnifying exemplary damages awarded for gross negligence. The Court based its decision on the policy language of the insurance contract, the lack of a legislative prohibition, and the state's strong freedom‑of‑contract principles. Justice Hecht and Justice Johnson filed concurring opinions, with Hecht offering additional analysis and Johnson limiting his concurrence to parts of the opinion.