Court: Joint Venture Clause Doesn’t Limit Insurers’ Exposure for Defense Costs

The Deepwater Horizon oil spill has given rise to some interesting insurance cases which have the potential to impact insurance disputes regardless of venue. Consequently, although these cases have primarily been litigated in Texas, they are worthy of further review, even for the New York insurance practitioner. In the most recent decision, the Supreme Court of Texas ruled that a clause that reduces the insurers’ liability for joint venture risks by the insured’s percentage interest in the joint venture did not limit the insured’s right to recover defense expenses. In this article, partner Howard Epstein and special counsel Theodore Keyes discuss in detail the recent decision in Anadarko Petroleum v. Houston Cas. Co. and its relevance to New York courts.