TX STATETexas Court of Appeals, 1st District (Houston)
2004

Atlantic Lloyds Insurance Co. v. Butler

137 S.W.3d 199Texas Court of Appeals, 1st District (Houston) • Decided 2004Enforced

HOLDING

Multiple plaintiffs sued insurance companies over a 1993 settlement agreement in a toxic-tort case, claiming the insurers breached the deal by not paying the full policy limits. The Texas Court of Appeals ruled that the settlement was for a fixed amount of $9,759,562—not all available coverage—and the insurers did not breach it. This case shows that settlement agreements are binding contracts with specific terms, and courts will enforce them as written.

KEY FINDINGS

Settlement Agreement

Settlement agreements must clearly state whether they cover a specific dollar amount or all available policy limits. Ambiguity will be interpreted against the drafter.

Insurance Requirements

Once a settlement agreement is signed with releases, you generally cannot later claim the other party owed you more money or additional coverage.

FULL COURT OPINION