Lyda Swinerton Builders, Inc. v. Okla. Sur. Co.

JAMES E. GRAVES, JR., Circuit Judge:

We withdraw our prior opinion, Lyda Swinerton Builders, Inc. v. Oklahoma Surety Co. , 877 F.3d 600 (5th Cir. 2017), and substitute the following in light of the Texas Supreme Court's opinion on rehearing in USAA Texas Lloyds Co. v. Menchaca , 545 S.W.3d 479 (2018).

This case involves several issues of Texas law relating to an insurer's duty to defend and the damages that an insured may recover when an insurer breaches that duty. The district court, after disposing of much of the case through a series of partial summary judgment rulings and conducting a bench…