The Texas Supreme Court recently had occasion to enforce the “no direct action” rule precluding a claimant from suing directly a defendant’s liability insurer, and it did. In Re Essex Insurance Co., ____ S.W.3d ____, 2014 WL 6612590 (Tex. Nov. 21, 2014).
A plaintiff sued for injury and then sued the defendant’s CGL insurer (which had contested coverage) for declaratory relief seeking a declaration that the insurer must indemnify the defendant for the defendant’s liability. The insurer moved to dismiss, and the trial court denied the motion. The Court of Appeals denied the insurer’s petition for mandamus. The Texas Supreme court granted mandamus and ordered the trial court to vacate its denial of the motion to dismiss.