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EMPLOYERS NAT. INS. CORP. v. ZURICH AMERICAN INS.

No. 85-1416.

792 F.2d 517 (1986)

EMPLOYERS NAT'L. INSURANCE CORP., the State Fair of Texas, Steck & Stapf Attractions, Inc., Sandra Millard, Individually and As Administratrix of the Estates of Fred Millard, and As Next Friend of Roxanne Dawn Millard, Renee Diane Millard and Robin Denise Millard, Plaintiffs-Appellees, v. ZURICH AMERICAN INSURANCE COMPANY OF ILLINOIS, Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

Rehearings Denied July 29, 1986.

Attorney(s) appearing for the Case

R. Brent Cooper, Royal H. Brin, Jr., Judith H. Winston, Michael W. Huddleston, P. Michael Jung, Dallas, Tex., for defendant-appellant.

Sidney H. Davis, Tom J. Stollenwerck, Dallas, Tex., for Employers, et al.

Russell B. Smith, Dallas, Tex., for State Fair of Texas.

Alfred W. Ellis, Dallas, Tex., for Steck & Stapf Attractions, Inc.

Darrell Panethiere, Windle Turley, Dallas, Tex., for Sandra Millard, et al.

Before REAVLEY, RANDALL and DAVIS, Circuit Judges.

REAVLEY, Circuit Judge:

The dispositive question here is this: under Texas law, if a liability insurer breaches its duty to defend the insured, and if the insured is thereafter held to be liable to a third party for an amount in excess of the policy limits, shall the insurer be held liable for the full amount of the judgment? The district court has rendered summary judgment against the insurer for the excess amount on a record that shows only that the insurer violated...

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