Ortiz v. Great Southern Fire & Casualty Insurance Co.

SPEARS, Justice.

The question presented is whether an insurer is entitled to complete reimbursement out of a third-party tortfeasor’s settlement payment which only partially compensates the insureds’ loss. The trial court rendered summary judgment allowing the insurer subrogation in an amount equal to its payment to the insureds, and the court of civil appeals affirmed. 587 S.W.2d 818. We reverse and remand.

Mike and Olivia Ortiz obtained a fire insurance policy on their home from Great Southern Fire and Casualty Insurance Company. The Ortizes did not insure the contents of the house. On…