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MID-CONTINENT CAS. CO. v. ELAND ENERGY, INC.

No. 11-10649.

709 F.3d 515 (2013)

MID-CONTINENT CASUALTY COMPANY, Plaintiff-Appellee v. ELAND ENERGY, INC.; Sundown Energy LP, Defendants-Appellants. Eland Energy, Inc.; Sundown Energy, LP, Plaintiffs-Appellants v. Mid-Continent Casualty Company, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

February 22, 2013.

Attorney(s) appearing for the Case

Levon G. Hovnatanian , Robert G. Dees , Christopher Weldon Martin , Bruce Edwin Ramage , Senior Counsel, Martin, Disiere, Jefferson & Wisdom, L.L.P., Houston, TX, for Plaintiff-Appellee.

Carl David Rosenblum , Madeleine M. Fischer , Alida C. Hainkel , Jones Walker, New Orleans, LA, for Defendants-Appellants.

Before JOLLY, JONES, and GRAVES, Circuit Judges.

EDITH H. JONES, Circuit Judge:

The principal issue raised in this appeal is whether an insurer breaches a duty to its insured in Texas by surreptitiously attempting to settle a covered third-party claim and truncating its duty to defend, despite paying the full limits of its coverage. According to appellant Sundown1, Mid-Continent Casualty Company ("Mid-Continent") prematurely tendered the limits of Sundown's primary and umbrella policies...

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