Lyda Swinerton Builders, Inc. v. Oklahoma Surety Co.

OSC filed suit challenging the district court's grant of summary judgment in favor of LSB on OSC's duty to defend, OSC's breach of that duty, and OSC's liability under the Texas Prompt Payment of Claims Act (PPCA). OSC also appealed the denial of its partial motion for summary judgment based on the anti-stacking rule. The Fifth Circuit held that there were no genuine issues of material fact and LSB was entitled to judgment as a matter of law. Therefore, the court affirmed the district court's grant of summary judgment in LSB's favor on the duty to defend and OSC's breach of that duty. The court also affirmed the district court's denial of OSC's motion for partial summary judgment based on the anti-stacking rule. Likewise, the court also rejected OSC's challenge to the district court's grant of summary judgment in favor of LSB under the PPCA. The court reversed the district court's judgment with respect to LSB's Chapter 541 of the PPCA claim and remanded for further proceedings in light of this opinion and USAA Texas Lloyds Co. v. Menchaca. Finally, the court affirmed the district court's damages determinations. View "Lyda Swinerton Builders, Inc. v. Oklahoma Surety Co." on Justia Law