A Texas appellate court has reversed summary judgment for two D&O insurers by finding that the insurers were precluded from using an insurance provision on the interrelationship of claims to preclude coverage. Gastar Exploration Ltd. v. U.S. Specialty Ins. Co., No. 14-12-00118-CV (Tex. App. July 16, 2013). The insurers had asserted that seven lawsuit filed against the policyholder during the policy period were related to lawsuits filed prior to the policy period and thus precluded from coverage. The insurers relied on the interrelationship of claims provision in the policies, which stated that a claim “alleging, arising out of, based upon or attributable to the same facts, circumstances, situations, transactions or events or a series of related facts, circumstances, situations, transactions or events will be considered to be a single Claim and will be considered to have been made at the time the earliest such Claim was made.” In rejecting this argument, the court first ruled that while appearing in the “conditions” section of the policy, the interrelationship of claims provision was effectively an exclusion because it narrowed coverage originally created by the insuring agreement. The court then ruled that the interrelationship of claims provision was in conflict with the prior and pending litigation exclusion in the policy or at best created an ambiguity, mandating that the court adopt an interpretation that most favored coverage.