No. 88-2699.

896 F.2d 949 (1990)

UNITED STATES AVIATION UNDERWRITERS, INC., Plaintiff-Counter Defendant-Appellant, v. OLYMPIA WINGS, INC., et al., Defendants-Counter Plaintiffs-Appellees, v. AETNA CASUALTY, et al., Counter-Defendants-Appellants.

United States Court of Appeals, Fifth Circuit.

Rehearing and Rehearing Denied May 7, 1990.

Attorney(s) appearing for the Case

Ralph I. Miller, Frank Finn, and Rachelle Hoffman Glazer, Thompson & Knight, Dallas, Tex., Richard M. Sharp, Nancy B. Stone, and Bruce C. Swartz, Washington, D.C., for appellants.

Robert L. Collins, and Luis A. Vallejo, Houston, Tex., for Olympia Wings, Inc., et al.

Mark A. Hovenkamp and George M. Fleming, Houston, Tex., for Carol Faunce.

Harold Lloyd, Houston, Tex., David W. Holman and Craig Lewis, Fisher & Gallagher, Houston, Tex., and Tom Davis, Byrd, Davis & Eisenberg, Austin, Tex., for Susan Marney, et al.

Before DAVIS and DUHE, Circuit Judges, and LITTLE, District Judge.

Rehearing and Rehearing En Banc Denied May 7, 1990.

W. EUGENE DAVIS, Circuit Judge:

The principal disputes in this litigation, which followed an airplane crash, revolve around the insurer's denial of coverage. During the pendency of litigation the liability insurer, United States Aviation Underwriters (USAU), declined to provide an unqualified defense and filed a declaratory judgment challenging coverage. Less than a month later, the insured, Olympia Wings...

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