PATRICK E. HIGGINBOTHAM, Circuit Judge.
Star Insurance Company ("SIC") refused to defend or indemnify its insured, the City of College Station ("the City"), in a lawsuit brought by Weingarten Realty Investors ("WRI"), a real-estate investment trust not party to this appeal. The City settled the underlying litigation with WRI and sued SIC to recover defense costs, indemnification, and statutory penalty interest. Applying Texas law, the district court concluded that...
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