Fifth Circuit Determines Covenant Not to Sue Extinguishes the Duty to Defend
On November 11, 2019, the U.S. Court of Appeals for the Fifth Circuit held in Aggreko, L.L.C. v. Chartis Specialty Ins. Co., No. 18-40325, slip op. (5th Cir. Nov. 11, 2019), that, under both Texas and Louisiana law, a covenant not to execute extinguished the primary insurer’s duty to defend its insured. The case arose out of a wrongful death suit. The primary insurer initially defended the defendant-insured Aggreko against the claimants’ suit but later paid the claimants the
