Westlake Chemical: Texas Court of Appeals applies Authorized Representative Exclusion in finding No Coverage under Crime Policy for Phony Invoicing Scheme
By Chris McKibbin and Devra Charney On May 25, 2023, the Texas Court of Appeals released its decision in Westlake Chemical Corporation v. Berkley Regional Insurance Company. The Court affirmed the District Court’s summary judgment in favour of the insurers on the basis that the Authorized Representative Exclusion applied. The Court’s decision is notable in finding that the exclusion does not require an agency relationship and applies to a broader range of circumstances where the representative has permission to, or is otherwise empowered to, act on an insured’s behalf. The Facts Westlake Chemical Corporation (“Westlake”) manufactures polyethylene and polyvinyl