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LENNAR CORPORATION v. MARKEL AMERICAN INSURANCE COMPANY

No. 11-0394.

413 S.W.3d 750 (2013)

LENNAR CORPORATION, Lennar Homes of Texas Sales & Marketing Ltd., and Lennar Homes of Texas Land & Construction Ltd., Petitioners, v. MARKEL AMERICAN INSURANCE COMPANY, Respondent.

Supreme Court of Texas.

Decided August 23, 2013.

Rehearing Denied December 13, 2013.

Attorney(s) appearing for the Case

David Hurst Brown , Brown & Kornegay, LLP, James L. Cornell , Gardere Wynne Sewell LLP, Vincent Eugene Morgan , Pillsbury Winthrop Shaw Pittman LLP, Houston, TX, Erika Lea Blomquist , Haynes & Boone, LLP, Ernest Martin Jr. , Haynes & Boone, LLP, Dallas, TX, Lee H. Shidlofsky , Shidlofsky Law Firm LLP, William J. Chriss , Law Offices of William J. Chriss, Austin, TX, Marc E. Gravely , Gravely & Pearson, LLP, San Antonio, TX, Patrick J. Wielinski , Cokinos Bosien & Young, Irving, TX, for Amicus Curiae Certain Texas Insurance Coverage Lawyers.

Laura A. Foggan , Wiley Rein & Fielding, LLP, M. Addison Draper , Wiley Rein LLP, Washington, DC, Wade Caven Crosnoe , Thompson Coe Cousins & Irons, L.L.P., Austin, TX, for Amicus Curiae Complex Insurance Claims Litigation Association.

Manuel (Ned) Munoz, Jr. , Texas Assoc. of Builders, Austin, TX, for Amicus Curiae National Assoc. of Home Builders & Tx. Assoc. of Builders.

Lee H. Shidlofsky , Shidlofsky Law Firm LLP, Austin, TX, for Amicus Curiae Texas Association of Builders.

Patrick J. Wielinski , Cokinos Bosien & Young, Irving, TX, for Amicus Curiae Texas Building Branch.

J. James Cooper , John W. Slates , Gardere Wynne Sewell LLP, Stacy R. Obenhaus , Dallas, TX, Samantha Kay Boutte Trahan, Gardere Wynne Sewell LLP, Houston, TX, for Petitioners Lennar Corporation.

Chester Dennis Barrow Jr. , Timothy F. Lee , Wendy Ware , Ware Jackson Lee & Chambers LLP, John E. Nelson III , Houston, TX, for Respondents Markel American Insurance Company.

Justice HECHT delivered the opinion of the Court, in which Chief Justice JEFFERSON, Justice GREEN, Justice JOHNSON, Justice WILLETT, Justice GUZMAN, Justice LEHRMANN, and Justice DEVINE joined.

Having determined that homes built with an exterior insulation and finish system ("EIFS") suffer serious water damage that worsens over time, a homebuilder undertook to remove the product from all the homes it had built and replace it with conventional stucco. The homebuilder...

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