Yetter Coleman successfully reversed a summary judgment against its client, Gastar Exploration, Ltd., in a coverage dispute between Gastar and two insurance companies, US Specialty and Axis. Both insurers issued “claims-made” policies covering Gastar for securities claims, but the insurers denied coverage for a series of claims filed while the policies were in force. After that denial of coverage, Gastar settled the claims and is now seeking reimbursement from its insurers.
The Houston First Court of Appeals found in Gastar’s favor because of a modification that Gastar had negotiated in policy exclusions to extend coverage regardless of a defined category of prior litigation. The court of appeals rejected the insurers’ argument that the prior litigation negated coverage under other insuring provisions.
The case has been remanded back to the trial court for further disposition.