TX STATETexas Supreme Court
2009

D.R. Horton-Texas Ltd. v. Markel International Insurance Co.

300 S.W.3d 740Texas Supreme Court • Decided 2009Reversed
FLAGSHIPBroad IndemnificationCited 236 times

HOLDING

A homeowner sued a general contractor (D.R. Horton) for mold damage caused by construction defects, but did not name the subcontractor who performed the work. The general contractor sought defense and indemnification from the subcontractor's insurance policy. The Texas Supreme Court ruled that an insurer can owe indemnification even when it doesn't owe a defense, and that coverage depends on the facts of the injury, not just who is named in the lawsuit. This matters to subcontractors because your insurance may have to cover the general contractor's losses even if the homeowner never sued you directly.

KEY FINDINGS

Broad Indemnification

Your CGL insurance can be required to indemnify a general contractor for defects you caused, even if the homeowner never named you as a defendant

FULL COURT OPINION