November 24th, 2017

​US Court of Appeals for the Fifth Circuit Opinions
Cooper Industries, Ltd. v. National Union Fire Insurance Co.

Docket: 16-20539
Opinion Date: November 20, 2017
Judge: Carolyn Dineen King
Areas of Law: Insurance Law

Cooper filed suit against National Union after the insurer denied a claim under a commercial-crime insurance policy. The Fifth Circuit affirmed the district court's take-nothing judgment against Cooper. Determining that Texas law governs the court's interpretation of the policy, the court held that Cooper suffered a "loss" only after it loaned the principal to Greenwood and Walsh and that Cooper did not "own" the funds when they were in the fraudsters' possession. Because these holdings were sufficient to preclude coverage, the court need not consider the parties' remaining contentions. Accordingly, the court dismissed National Union's cross-appeal.