Federal Deposit Insurance Corp. v. Holland American Insurance Co.

OPINION

OSBORN, Chief Justice.

The opinion issued by this Court on April 20, 1988, is set aside and the following is the opinion of the Court.

This appeal is from a summary judgment involving an insurance company’s subrogation rights to proceeds paid in settlement of a third-party negligence suit, and a cross action against the insurance company for wrongful payment of proceeds under a physical loss policy. We affirm.

In January 1983, Fred M. Newman, Inc., obtained financing for the drilling company at The First National Bank of Midland. The company executed a note and security agreement and…