TEXAS UPDATE!
By Chamberlain♦McHaney
TEXAS LAWYERS
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Tx/Up!’s Bold Summer Forecast: At the rate things are going, water from the Gulf will soon be selling for $4 a gallon.
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Supreme
Court of Texas Once Again Rules Contractual Subrogation Trumps Equitable
Subrogation: This morning, the Supremes once again
took up the issue of whether the equitable “made whole” doctrine can override
an insurance policy subrogation clause. In this case the trial court allocated
all of an $800,000 negligence-claim settlement to Sigmundik and her sons and
none to her late husband’s estate. That allocation by the trial court
effectively circumvented the state insurer’s subrogation rights to recover more
than $300,000 in medical expenses. The court of appeals affirmed. The Texas
Supreme Court reversed and held that the equitable doctrine must bend to
contract and statutory mandates, not vice versa, citing its previous decision
in Fortis
Benefits v. Cantu. The trial court relied on Ortiz
v. Great Southern Fire and Casualty Insurance,
holding that an insurer may be denied equitable subrogation when the parties
are not fully compensated for injuries. But Ortiz dealt with equitable
subrogation, not contractual subrogation as in this case. Texas Health Insurance Risk
Pool v. Sharon B. Sigmundik. (Texas, May 28, 2010).
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We will cover all the important case law developments of the year at our full day, fully accredited 15th Annual Ultimate Claims Handling Seminar on October 1, 2010 at CityPlace Conference Center in Dallas, Texas. Mark your calendars now and save the date. Registration will open in August.
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Chamberlain♦McHaney is A-V (highest peer review) Rated by Martindale-Hubbell (Bar Registry of Preeminent Lawyers) and is listed in A.M. Best’s Directory of Recommended Attorneys.
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Visit us at www.chmc-law.com
David E. Chamberlain
Board Certified, Personal Injury Trial Law
Texas Board of Legal Specialization
Chamberlain♦McHaney
Austin and San Antonio
512-474-9124