| Attorneys Larry Warren and Ruth Malinas win case in the Fifth Circuit | | 10/21/2007 | | In a case of first impression handled by the Appellate and Transportation Practice Groups, the United States Court of Appeals affirmed a summary judgment in favor of an insurer, holding that a federally-mandated endorsement did not cover a bus accident in Mexico. The policy’s insurance agreement required that the accident or loss occur within the coverage territory, which was defined as the United States, Puerto Rico, Canada, and U.S. possessions and territories. Because the insured was a bus company, however, the policy also included a MSC-90B endorsement required by the federal regulations governing interstate transportation of passengers and intended to ensure compliance with the federal financial responsibility statutes. When the endorsement is applicable, the insurer cannot refuse to pay a judgment based on a policy condition, limitation, provision or stipulation. Parties with a judgment against the insured bus company for injuries and deaths caused by the accident argued that the endorsement precluded application of the coverage territory provision. The Fifth Circuit disagreed after construing the endorsement, the financial responsibility statute, and the federal regulations. The Court concluded that the endorsement’s coverage is limited to accidents occurring during transportation within the United States. Shareholder Larry Warren handled the case in the district court and shareholder Ruth Malinas handled the appeal. | | |
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