David White Quoted in Law360 on Anti-Concurrent Clause Suits

“Texas Ruling Won’t End Anti-Concurrent Clause Suits”

The Texas Supreme Court’s blessing of anti-concurrent causation clauses, exclusions that bar coverage for a loss caused by both a covered and excluded event, will not spell the end to causation battles across the state, attorneys say.

In an April 24 decision, the state high court affirmed Lexington Insurance Co.’s appellate win reversing a jury verdict under a policy that excluded coverage for flood damage even when the building was damaged concurrently by a covered cause of loss. The case marked the first time the Supreme Court had ruled on an anti-concurrent causation clause.

While the decision puts to bed the question of whether anti-concurrent causation clauses are enforceable in Texas, policyholders and insurers will continue to wage war over issues relating to the cause of policyholders’ damages, according to attorneys.

“It’s really no surprise — the Supreme Court approved the holdings in cases from the Fifth Circuit and state courts that have enforced the exclusion on its terms,” said David S. White, counsel at Thompson & Knight LLP’s Dallas office. “The Supreme Court has now given its blessing to the specific language and those prior cases.”