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Insurance firm sues two insurance businesses, alleging denial of duty to defend

SOUTHEAST TEXAS RECORD

Thursday, November 21, 2024

Insurance firm sues two insurance businesses, alleging denial of duty to defend

Contract

An insurance company is suing two other insurance businesses in an attempt to have them defend and indemnify another party in an underlying suit.

Mt. Hawley Insurance Company, of Peoria, Ill., filed a lawsuit June 30 in the Houston Division of the Southern District of Texas against Allied World Assurance Company (U.S.) and United Specialty Insurance Company, alleging they have a duty to defend and indemnify a company in an underlying suit.

Mt. Hawley is currently defending Trinsic Residential Builders in an underlying lawsuit styled Mark E. Johnson v. Hull Associates North and Trinsic Residential Builders in Harris County District Court. The plaintiff seeks a declaration stating Allied World and United Specialty have a duty to defend and indemnify Trinsic as an additional insured under their policies.

Despite numerous requests, the suit alleges the defendants have not stepped forward to defend Trinsic. Specifically, Allied World has denied any duty to defend Trinsic, and United Specialty has agreed it has a duty to defend, but has not made any effort to do so to date, the suit says.

Mt. Hawley seeks declaratory judgment that the defendants have a duty to defend and indemnify Trinsic in the underlying suit, a declaration the Allied World policy is primary and non-contributory with the Mt. Hawley policy, costs of the underlying suit and attorney fees. The plaintiff is represented by attorneys Greg K. Winslett and Tammy L. Clary of Quilling, Selander, Lownds, Winslett & Moser in Dallas.

Houston Division of the Southern District of Texas case number 4:15-cv-01871

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