Texas ‘8 Corners’ decision adds wrinkles to cover fights

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By Angela Childers (February 11, 2022, 8:27 PM EST) – Lone Star State courts can go beyond policy language in insurance coverage disputes under certain conditions, the Supreme Court of Justice has ruled. Texas on Friday, in a ruling that reshapes the state’s duty-to-defend analysis. However, the judges ruled that this “extrinsic evidence” exception did not apply in another insurance dispute decided on the same day.

The Texas Supreme Court said Friday that courts can go beyond policy wording in insurance coverage disputes under certain conditions. (AP Photo/Aaron M. Sprecher)

Judges heard oral arguments in both cases in September to determine whether the state could deviate from the so-called “eight-corner rule,” under which the court…

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