St. Paul Fire and Marine Ins. Co. v. Compaq Computer Corp.

MURPHY, Circuit Judge.

St. Paul Fire & Marine Insurance Company brought this declaratory judgment action for a ruling that it had no duty to defend its insured, Compaq Computer Corporation (Compaq), in a case brought against it in Texas by Hal LaPray (LaPray litigation). Compaq counterclaimed for a declaratory judgment that St. Paul had such a duty and for breach of contract damages and then moved for statutory damages under Texas law. The district court 1 ruled in deciding the motions before it that St. Paul had a duty to defend and that Compaq was neither entitled to reimbursement for…