Hudson’s amended complaint argued that “The allegations in the underlying lawsuit, together with the unpled extrinsic facts, are subject to the policy’s employer liability exclusion.”
Hudson’s counsel argues that the Texas Supreme Court’s recent decision in February 2022, in the case of Bitco General Insurance Co. v. Monroe Guaranty Insurance Co., allows insurers to introduce, and for a judge to look at evidence that was not pled in a complaint, or written into a policy. This ruling became known as “the eight corners rule” in determining whether or not an insurance company has a duty to defend it’s insured.
Attorney Kendrick told the court that Hudson initially agreed to represent BlaMar and Antonio G. Villarreal Lozano against the allegations of Esequiel Ybarra because it was unaware of Ybarra’s employment status. Hudson argues that Ybarra’s complaint did not mention that he was also employed by the trucking company. Hudson claims that if it had known sooner that Ybarra was also employed by the trucking company, it would have immediately invoked the exclusion clause.
