Liberty Mutual Wins Ruling on Texas Highway Lawsuits
A federal appeals court rules the insurer does not have to defend construction companies in 2021 pileup lawsuits.
Updated on Oct. 29, 2026 in Construction
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The U.S. Court of Appeals for the Fifth Circuit has affirmed a summary judgment in favor of Liberty Mutual regarding lawsuits stemming from a 2021 I-35 West pileup in Fort Worth. The court determined the insurance company is not obligated to defend construction firms that worked on the highway section.
Why it matters
The court found that the underlying lawsuits alleged failures in road maintenance and operation rather than construction-related actions. Because the claims did not link the builders' work to the bodily injuries sustained, Liberty Mutual was found not liable for coverage.
The February 2021 pileup involved 130 cars and resulted in 6 deaths and approximately 65 injuries. A separate Dallas County jury previously awarded a $44.1 million verdict against a trucking company, its driver, and the tollway operator.
The players
Liberty Mutual
This global insurance company provides a range of property and casualty products to personal and commercial customers.
U.S. Court of Appeals for the Fifth Circuit
This federal court hears appeals from the district courts located within Louisiana, Mississippi, and Texas.
The details
Liberty Mutual had initially defended the builders while reserving its right to later contest coverage. The judge overseeing the matter described the insurance policy language as clunky and poorly drafted.
Timeline
Construction work on the I-35 West highway section took place from 2013 to 2018.
The 130-car pileup occurred on February 11, 2021.
A Dallas County jury awarded a $44.1 million verdict in December 2025.
The U.S. Court of Appeals for the Fifth Circuit ruled in favor of Liberty Mutual on October 29, 2026.
Market Landscape
This decision clarifies the scope of insurance coverage for contractors involved in legacy infrastructure projects after major transit accidents. It sets a significant precedent for how insurers evaluate defense obligations when accidents involve maintenance versus construction defects.
This ruling defines the boundaries of corporate liability for companies involved in public infrastructure projects across the state. It signals to stakeholders that insurance coverage for such entities remains strictly limited to specific, contractually defined construction activities.
The takeaway
Insurance contract language remains a critical focal point for construction firms facing litigation in complex liability cases. Businesses should ensure their policies clearly delineate between construction actions and operational maintenance responsibilities to avoid coverage gaps.
Further reading
For more on regional industry updates, visit the Texas Construction section.
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