United States v. State Farm Mutual Automobile Insurance Company

PATRICK E. HIGGINBOTHAM, Circuit Judge:

The United States sued State Farm in federal district court for its costs of medical services provided to members of the United States Armed Services insured by State Farm. By summary judgment, the district court held that the government can recover under Mississippi law as a third party beneficiary of the policies. 717 F.Supp. 1207 (1989). State Farm appeals, contending that United States v. Standard Oil Co., 332 U.S. 301, 67 S.Ct. 1604, 91 L.Ed. 2067 (1947), requires application of federal law. Alternatively, State Farm argues that if state law does…