Lexington Insurance Company v. National Oil Well Varco, Inc. and Fiber Glass Systems, L. P.
Lexington Insurance Company (Lexington) brought a suit seeking a declaration of rights and duties under an insurance policy regarding an underlying lawsuit where Albemarle Corporation sued National Oilwell NOV, Inc. (National) for defective fiberglass downhole tubing. Lexington had initially acknowledged a duty to defend National after its self-insured retention (SIR) was exhausted. However, after the underlying case settled, Lexington contested its duty to defend and indemnify, and also claimed National failed to provide timely notice of SIR exhaustion. The trial court granted summary judgment in National's favor, finding Lexington had a duty to defend and was liable for defense costs. On appeal, the court affirmed the trial court's judgment, concluding that Albemarle's claims potentially encompassed covered property damage beyond the defective product itself and that Lexington's unilateral request for SIR exhaustion notice did not create an additional duty for National.