Lexington Insurance Co. v. National Oilwell Nov, Inc.

OPINION

JANE BLAND, Justice.

Albemarle Corporation (Albemarle) sued National Oilwell NOV, Inc. (National) in federal district court in Arkansas. It sought damages allegedly caused by defective fiberglass downhole tubing (DHT) that National had manufactured and sold it. National timely notified its insurer, Lexington, of the lawsuit, and Lexington acknowledged a responsibility to defend under a reservation of rights once National exhausted its self-insured retention.

After the case settled, Lexington brought this suit in Texas state district court, seeking a declaration of the rights and duties…