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Amerisure Insurance Co. v. Navigators Insurance Co.

This case arises out of a disagreement between two insurers over their respective duties to indemnify for personal injuries sustained in an automobile accident. The first issue is one of first impression for this court: whether the 2007 Texas Supreme Court decision in Mid-Continent Insurance Co. v. Liberty Mutual Insurance Co. precludes contractual subrogation simply because the insured has been fully indemnified. It does not. 5th U.S. Circuit Court of Appeals, No. 09-20060, 07-15-2010

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Published opinion

Before KING, BARKSDALE, and ELROD, Circuit Judges.

This case arises out of a disagreement between two insurers over their respective duties to indemnify for personal injuries sustained in an automobile accident. Amerisure, the primary insurer, argued that it did not have a duty to indemnify. Navigators, the excess insurer, disagreed, demanding that Amerisure pay the $1 million limit of its policy. The insurers, however, agreed that the personal-injury lawsuit should be settled, and they agreed on the amount of the settlement, $2.35 million. Amerisure paid the $1 million, but reserved its right to seek reimbursement. Navigators and another insurer paid the balance. Amerisure then sought reimbursement from Navigators through equitable and contractual subrogation. On cross-motions for summary judgment, the district court granted summary judgment for Navigators, finding that, although the Amerisure policy did not cover the incident, Amerisure could not recover through equitable or contractual subrogation.

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