Lyda Swinerton Builders, Inc. v. Oklahoma Surety Co.

JAMES E. GRAVES, JR., Circuit Judge:

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 trial on one remaining claim, issued a final judgment that largely (though not entirely) favored the insured. The insurer and the insured now cross-appeal from that judgment. We AFFIRM in part and REVERSE in part.

I. BACKGROUND

A. The Project and the Subcontract

Lyda…