HANSON PRODUCTION CO. v. AMERICAS INS. CO.

No. 96-20407.

108 F.3d 627 (1997)

HANSON PRODUCTION COMPANY, Neil E. Hanson, Chris W. Douglas, Steven M. Morris, Erik G. Hanson, Monico Properties, Inc., Chris N. Hanson, Michael E. Hanson, Ben A. McCarthy, Glen E. Vague, John J. Surko, T & M Petroleum, Inc., T.D. Gholson, Patricia Dean Boswell, Hamill Energy Company, Pvt 85 Ltd., Thru Line, Inc., Keystone, Inc., Sid R. Bass, Inc., Lee M. Bass, Inc., Perry R. Bass, Inc., Perry R. Bass, Trustee, and Vivian L. Smith, Estate, Plaintiffs-Appellants, v. AMERICAS INSURANCE COMPANY and Southern Marine & Aviation Underwriters, Inc., Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied May 2, 1997.


Attorney(s) appearing for the Case

John L. McConn, Jr., Kurt Matthew Hanson, McConn & Williams, Houston, TX, for Plaintiffs-Appellants.

Jack Miller Murchison, Loren Robert Hora, Griggs & Harrison, Houston, TX, for Defendants-Appellees.

Before POLITZ, Chief Judge, and REAVLEY and DENNIS, Circuit Judges.


REAVLEY, Circuit Judge:

The issue in this diversity case under Texas law is whether a surplus lines insurer, in order to avoid its coverage obligations, must show prejudice where the insured has failed to provide prompt notice of a claim. Because we conclude that the Supreme Court of Texas would require proof of prejudice, we reverse.

BACKGROUND

In 1985 appellant Hanson Minerals Company, a Texas corporation, entered into operating agreements pertaining...

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