Lexington Insurance Company v. Exxon Mobil Corporation and ExxonMobil Oil Corporation
This case from the Ninth District of Texas at Beaumont addresses an appeal by Lexington Insurance Company against Exxon Mobil Corporation and ExxonMobil Oil Corporation. Lexington challenged a summary judgment that awarded Exxon $25 million under an umbrella insurance policy. The dispute centered on whether Exxon qualified as an additional insured under a policy issued to Brock Services, LTD, and if specific policy exclusions for workers' compensation and employer's liability applied. The court affirmed the arbitration finding that Exxon was an additional insured but ultimately reversed the trial court's judgment. It ruled that the employer's liability exclusion applied, given Exxon's status as a statutory employer of Brock's injured employees through its Owner Controlled Insurance Program (OCIP), thus entitling Exxon to the exclusive remedy defense under the Texas Workers' Compensation Act. Consequently, Lexington was found to have no duty to defend or indemnify Exxon, and the awards for damages, attorney's fees, and interest were reversed.