Here is a type of case insurance lawyers do not see very often. It is from the Southern District of Texas, Corpus Christi Division. It is styled, Lamarr Womack & Associates, L.P.; dba LWA Architects, et al v. Lexington Insurance Company.
LWA filed a claim against Lexington seeking a defense and indemnity under the policy with Lexington. Lexington tendered a defense under a reservation of rights to dispute coverage, claiming LWA had notice of the claim prior to purchasing the insurance policy and failed to disclose it in their application. Lexington initiated arbitration seeking a declaration that it owes LWA neither a defense nor indemnity for the underlying claim.
LWA filed this declaratory judgment action, seeking a judicial determination of those issues and making a claim for breach of contract. Lexington filed for dismissal under Federal Rule 12(b)(6), arguing that LWA failed to state a claim on which relief may be granted because of the arbitration agreement.