Ulico Casualty Co. v. Allied Pilots Association

This case arises out of a dispute over insurance coverage for defense costs under a claims-made policy. In two issues, appellant Ulico Casualty Company contends that it cannot be liable for appellee Allied Pilots Associations (the Association) defense costs because waiver and estoppel cannot create coverage for the Associations late-reported claim. Ulico also claims that the trial court erred by vacating the jurys damages award and entering judgment for almost double the amount of the jurys award. The Association brings three cross-issues, all contending that it is entitled to attorneys fees in its breach of contract suit against Ulico. Because we conclude that waiver and estoppel apply in this instance and that the Association proved its damages as a matter of law, we affirm the trial courts judgment as to liability and damages. However, because we also hold that the Association is entitled to attorneys fees under Texas Civil Practice and Remedies Code section 38.001(8), we remand as to the Associations request for attorneys fees. TEX. CIV. PRAC. & REM. CODE ANN. § 38.001(8) (Vernon 1997).