Two Pesos, Inc. v. Gulf Insurance Co.

OPINION ON MOTION FOR REHEARING

LEE, Justice.

After granting appellee’s motion for rehearing, we withdraw our opinion on original submission and substitute the following.

This is an appeal from a summary judgment in a declaratory judgment action brought by appellee, Gulf Insurance Company (“Gulf’), to determine coverage under a general liability policy it issued to appellant, Two Pesos, Inc. (“Two Pesos”). Two Pesos counterclaimed in the declaratory action, alleging bad faith denial of coverage. The central issue determining coverage is whether a claim for supplemental damages from continued…