Insurance coverage

Court tackles consequential vs. direct damages in insurance coverage dispute

court tackles consequential vs. direct damages in insurance coverage dispute | Texas avocado


Thank you for sharing!

Your article has been successfully shared with the contacts you provided.

Total Petrochemicals & Refining USA refinery at Houston Ship Channel. Credit: Google

Total’s call was more focused on Kinder Morgan’s actual coverage, which was capped at $6 million. The trial court sided with Kinder Morgan on this point, but Total claimed actual damages of $9 million and hoped to exceed the limit.

September 15, 2022 at 4:35 PM

5 minute read

Adolfo Pesquera

What do you want to know

  • A Houston appeals court has weighed definitions of consequential versus direct damages in a business-to-business dispute over insurance coverage.
  • In Texas case law, there is no clear line separating consequential damages from direct damages.
  • The dispute between two petrochemical refining companies has been sent back to reconsider damages, based on the court’s findings.

A Houston appeals court has returned a damages reconsideration case involving an insurance coverage dispute stemming from a workplace death.

A key issue raised concerned the arbitration of claims as to whether damages were consequential or direct – something the Fourteenth District Court of Appeals acknowledged in its opinion is not well defined in Texas case law.

you might like

4 minute read

3 minute read

4 minute read

4 minute read

More ALMs

Premium Membership

With this subscription, you’ll get unlimited access to premium, high-quality content, online and on-demand, from respected professors in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys who have completed their CLE requirement but need access to resourceful information for their areas of practice.
See now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each lawyer gets unlimited access to premium, high-quality, on-demand content from renowned legal industry professors, as well as administrative access to easily manage the CLE for the whole team.
See now

Bundled subscriptions

Access some of the most knowledgeable and experienced lawyers with our 2 bundled options! Our compliance packages are curated by CLE advisors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that fits your needs. Both options are the same price.
See now


Florio Kenny Raval, LLP, located in Lyndhurst, New Jersey, is seeking to hire two (2) trial attorneys. Applicants must be admitted to…

Apply now >


NJLJ website

McOmber McOmber & Luber: our new partners Ashley E Malandre and Rachel C. Krupnick provide accomplished representation for: labor law, sexual harassment, discrimination, personal injury, collections, real estate, land use and zoning, business

View ad ›