Summary Judgment Success for Dallas Law Firm Hermes Sargent Bates Federal District Court Judge Awards Nothing to Plaintiff

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On July 6, 2006, the United States District Court for the Southern District of Texas Brownsville Division granted a declaratory judgment action in favor Old Republic Union Insurance (Great West Casualty Company), finding no duty to defend and no duty to indemnify for a policy limits settlement paid by Penn-America Insurance Company in an underlying lawsuit involving a motor vehicle accident which resulted in two deaths. Of the $1 million in indemnity and nearly $100,000 in attorneys' fees sought by Penn-America Insurance Company, the judge awarded them $0.

On July 6, 2006, the United States District Court for the Southern District of Texas Brownsville Division granted a declaratory judgment action in favor Old Republic Union Insurance (Great West Casualty Company), finding no duty to defend and no duty to indemnify for a policy limits settlement paid by Penn-America Insurance Company in an underlying lawsuit involving a motor vehicle accident which resulted in two deaths. Penn-American had issued a commercial general liability policy to the insured and Old Republic had issued a commercial automobile policy to the insured. Of the $1 million in indemnity and nearly $100,000 in attorneys' fees sought by Penn-America Insurance Company, the judge awarded them $0.

Attorneys David Sargent and Greg Phillips from the Dallas law firm of Hermes Sargent Bates were successful in their motion for summary judgment on behalf of Old Republic against Penn-America’s cross-motion for partial summary judgment seeking reimbursement, in which Penn-America maintained it was entitled to indemnity and equitable subrogation from Old Republic for the previous settlement of the claims against the insured.

Penn-America Insurance Co., Inc., vs. Old Republic Union Insurance Company, Inc.

Civil Action No. B-04-195

On July 21, 2006, confirmation was received that Penn-America will not appeal the judgment.

Hermes Sargent Bates, the largest firm in Texas with a female name partner, is a full-service commercial firm that works with a wide array of local, national, and international clients in the risk, manufacturing, services, and commercial sectors. Named by Texas Lawyer as the sixth fastest growing firm in Texas, the firm handles a wide range of cases, including: appellate & litigation support, banking & finance, bankruptcy & creditors’ rights, commercial litigation, construction litigation, general employment & labor, healthcare, mass tort litigation, medical malpractice, premises liability, products liability, professional liability, real estate, transportation, and workers’ compensation. The attorneys also have a broad depth of experience in advising clients on non-litigation matters.

For more information, please contact David Sargent at 214-749-6516, or Greg Phillips at 214-749-6549. The firm’s website can be found at http://www.hsblaw.com.

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Lauren Laughead
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