A Company By Any Other Name: Is it the Same?

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.

A copy of the opinion is here.


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