AIG Aviation (Texas), Inc. and National Union Fire Insurance Company of Pittsburgh, Pennsylvania v. Holt Helicopters, Inc.

248 S.W.3d 169 (Tex. 2008) · Supreme Court of Texas · January 11, 2008 · No. No. 06-0484

Summary

This document concerns AIG Aviation (Texas), Inc. and National Union Fire Insurance Company's petition in the Supreme Court of Texas involving aviation insurance coverage and policy provisions concerning pilot qualifications. The text consists of Justice Willett's dissent from the denial of rehearing, arguing that aviation insurance contracts should be enforced according to their express terms and that the causal-connection rule from Puckett v. U.S. Fire Insurance Co. should be overruled or distinguished.

Court
Supreme Court of Texas
Writing for the Court
Justice Willett
Jurisdiction
Texas
Decision date
January 11, 2008
Docket number
No. 06-0484
Procedural posture
Dissent from the Texas Supreme Court's denial of rehearing on a petition for review.
Precedential value
Published dissent from denial of rehearing; nonbinding as a dissent.
Parties
AIG Aviation (Texas), Inc., National Union Fire Insurance Company of Pittsburgh, Pennsylvania v. Holt Helicopters, Inc.
Disposition
other

Topics

insurance coveragecontract interpretationinsuranceappellate procedure

Practice areas

Insurance lawContract lawAppellate procedure

Questions Presented

  1. Whether the Texas Supreme Court should reconsider Puckett v. U.S. Fire Insurance Co.'s causal-connection requirement for enforcing aviation-insurance policy provisions.
  2. Whether aviation-insurance contracts should be enforced according to their express terms, without requiring the insurer to prove that the insured's breach caused the accident or damage.
  3. Whether the petition for rehearing should be granted.

Key quotations

In short, Puckett granted an unbargained-for expansion of coverage in the face of a bargained-for exclusion from coverage. (170)
As we have stressed, Texas courts must stick to what policies say, not what we wish they said. (170)
The Court should join the mainstream, not grant aviation contracts their own interpretive jet stream. (171)

Factual background

The underlying insurance dispute involved an aviation insurance policy containing an exclusion requiring a minimum level of pilot experience. Justice Willett contrasted that exclusion with the airworthiness-certificate provision addressed in Puckett and characterized the pilot-experience requirement as part of the basis of the bargain. The opinion does not provide additional factual details because it addresses only the denial of rehearing.

Procedural history

The underlying dispute concerned aviation-insurance coverage and a policy exclusion requiring a minimum level of pilot experience. The Supreme Court denied the petition for rehearing on April 9, 2008. Justice Willett dissented from that denial and argued that the court should address, overrule, or distinguish Puckett v. U.S. Fire Insurance Co.

Court Document

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