Doug Crownover v. Mid-Continent Casualty Co

JAMES L. DENNIS, Circuit Judge:

The question in this diversity case is whether an insurance company, Mid-Continent Casualty Co. (“Mid-Continent”), is obligated under Texas law to pay for damage caused by one of its insureds, Arrow Development, Inc. (“Arrow”), when Arrow failed to promptly correct work in the home that it had constructed for Doug and Karen Crownover and which failed to conform to the requirements of the construction contract into which Arrow and the Crownovers had entered. An arbitrator had earlier found Arrow liable to the Crownovers for breaching this express warranty to…