Jump to Navigation
Jump to Content

Century Surety Co. v. DeLoach

ELR Citation: 43 ELR 20184
Nos. 13-12-00072, (Tex. Ct. App., 08/01/2013)

A Texas appellate court held that an insurance company has a duty to defend its insured in underlying lawsuits stemming from a sinkhole formed by the insured's waste disposal well operations. The insurance company argued that it had no duty to defend because the insurance policy contains a pollution exclusion for property damage due to contamination from harmful substances. But the policy also contains an endorsement that expands coverage for blowout and cratering hazards. Because there is a conflict between the pollution exclusion and the blowout endorsement that would render the blowout endorsement meaningless, the court concluded that the blowout endorsement must supersede the pollution exclusion. The insured, therefore, is entitled to coverage.