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.