Cases & Deals

ATOFINA prosecutes claim for coverage as additional insured for wrongful death settlement

Clients ATOFINA Petrochemicals, Inc.

Jones Day represented ATOFINA (n/k/a Total Petrochemicals U.S.A., Inc.) at trial and on appeal in insurance coverage litigation arising from a claim against ATOFINA for the death of a contractor's employee. Under the subcontract ATOFINA was to be an additional insured on its subcontractor's insurance policies. The subcontractor's excess carrier, Evanston, denied coverage. The court of appeals reversed summary judgment against ATOFINA and rendered judgment for $5.75 million, plus interest, attorneys' fees, and a statutory penalty under the Texas Insurance Code. In this landmark decision for Texas insurance policy holders, the Court held that a breaching insurer cannot contest the reasonableness of a settlement entered into by its insured.

ATOFINA Petrochemicals, Inc. v. Evanston Insurance Company, 104 S.W.3d 247 (Tex. App. - Beaumont 2003); Evanston Insurance Co. v. Atofina Petrochemicals, Inc., 256 S.W.3d. 660 (Tex. 2008)