Paj, Inc., D/b/a Prime Art & Jewel, Petitioner v. the Hanover Insurance Company, Respondent

Summary

The Texas Supreme Court held that an insured’s failure to give timely notice of a claim does not defeat coverage when the insurer suffered no prejudice, treating the notice provision as a covenant whose breach is excused only if material. Accordingly, the Court reversed the Court of Appeals and remanded for further proceedings. Justice Willett dissented, arguing that the notice provision is a condition precedent that defeats coverage regardless of prejudice.