An interesting decision by Judge Barbara Lynn of the Northern District of Texas should make an insured very nervous. I’m talking about VRV Development, LP v. Mid Continent, No. 09-CV-1382 (N.D. Tex. Feb. 3, 2010). It is well settled that Texas is an 8 corner jurisdiction. This basically means that a written insurance contract will be strictly interpreted. But this result seems harsh.
What happened? In 2004 VRV Development, Inc. had a CGL policy with Mid Continent. It changed its name from VRV Development, Inc. to VRV Development, LP in 2005 but did not change the named-insured designation on tyhe CGL policy. A claim was made in 2007 for a failed retaining wall that had been built by VRV Development, Inc. in 2004.
The carrier denied coverage and the Judge agreed that the denial was appropriate.