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 liability insurer from indemnifying punitive damages awarded for gross negligence in the workers' compensation context. The Court based its decision on the policy language of the insurance contract, statutory scheme, and legislative intent. Two concurring opinions were filed, one emphasizing freedom of contract and the other limiting agreement with part of the majority's analysis.