Determining Subrogation Claims between Insurers After Mid-Continent v. Liberty Mutual

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In Mid-Continent Insurance Company v. Liberty Mutual Insurance Company, the Texas Supreme Court held that co-insurers could not use contribution and subrogation claims against one another to recover settlement funds paid under the duty to indemnify a mutual insured. The court, upon announcing its holding, limited it by stating, “[W]e conclude there is no right to reimbursement in the context presented.” The lingering question is, "What is the context presented?" This paper offers an answer to that question, which has puzzled insurance coverage lawyers in Texas since the case was decided.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Richard Wilson | Attorney Advertising

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