LEXINGTON INS. CO. v. STRAYHORN

No. 04-0429.

209 S.W.3d 83 (2006)

LEXINGTON INSURANCE COMPANY, Landmark Insurance Company, and American International Specialty Lines Insurance Company, Petitioners, v. Carole Keeton STRAYHORN, Comptroller of Public Accounts of the State of Texas, and Greg Abbott, Attorney General of the State of Texas, Respondents.

Supreme Court of Texas.

Opinion Delivered December 1, 2006.


Attorney(s) appearing for the Case

Cynthia Hollingsworth, Curtis L. Frisbie Jr., Randy D. Gordon, Samuel Eugene Joyner Jr., Gardere Wynne Sewell LLP, Dallas, Jeremy C. Martin, Irving, Anthony Icenogle, Joseph C. Boggins, De Leon Boggins & Icenogle, Austin, Chester J. Makowski, Royston Rayzor Vickery & Williams, L.L.P., Houston, for Petitioners.

William E. Storie, Office of Atty. Gen. of Texas-Taxation, Greg Abbott, Atty. Gen. of Texas, Barry Ross McBee, Edward D. Burbach, Esteban H. Rodriguez, Office of Atty. Gen., Austin, for Respondents.

Craig T. Enoch, Alexander J. Gonzales, Alejandro Sin Valdes, David Fowler Johnson, Winstead Sechrest & Minick P.C., Austin, for Amicus Curiae, American Insurance Association.

Melvin L. Burner, Long Burner Parks & DeLargy, P.C., Austin, for Amicus Curiae, Scottsdale Insurance Company.

Alene Ross Levy, Haynes & Boone, L.L.P., Houston, for Amicus Curiae, Varco International, Inc.

John Smithee, Templeton Smithee Hayes Heinrich & Russell, L.L.P., Amarillo, for Amicus Curiae, John Smithee.

James W. Paulsen, Houston, for Amicus Curiae, Yorkshire Ins. Co., Ltd.


Justice BRISTER delivered the opinion of the Court.

The Comptroller1 assessed almost $7 million in premium taxes against Lexington Insurance Company, Landmark Insurance Company, and American International Specialty Lines Insurance Company (collectively, "the insurers") for policies issued in the early 1990s.2 After the insurers proved that most of their policies were procured through surplus lines agents licensed...

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