(Summer 2007) The Texas Supreme Court today handed down its decision in this closely watched insurance coverage case involving the use of extrinsic evidence to determine an insurer’s duty to defend. The Court reaffirmed the “eight corners” rule, and declined to create a broad exception to that rule in cases where the true facts would have shown that the event did not take place within the insurer’s policy period. In Fielder Road, the plaintiff alleged that she was sexually molested by a church youth minister (Evans) “from approximately 1992 to 1994” at various church functions. She further alleged that during that entire time frame, Evans was employed by Fielder Road Baptist Church (“the Church”) and under its supervision and direction. The plaintiff sued the Church and Evans. The Church made demand upon GuideOne to defend the action under a CGL policy which included limited coverage for sexual misconduct. GuideOne agreed to defend, under reservation of rights, but filed a declaratory judgment suit seeking a finding that it had no obligation to defend or indemnify. In … Continue reading →
