Employer Can Seek Coverage for $1.5M Punitive Damage Award from Liability Ins. Carrier

A Texas employer was entitled to a declaratory judgment that its liability for a punitive damage award from an employee's lawsuit was not excluded from coverage under its liability insurance policies, but the 1st District Court of Appeals of Texas said that the employer did not establish the carrier's obligation to pay the award as a matter of law. Case: Tesco Corp. v. Steadfast Insurance Co., No. 01-13-00091-CV, 08/28/2014, published. Facts: Von Phathong sued the Tesco Corp. in a federal trial court in Colorado after he sustained injuries while working on a Tesco drilling rig. At th...