Texas Health Insurance Risk Pool v. Sigmundik

This health-insurance subrogation case tens on two rudimentary principles:

1. A trial court abuses its discretion when it invokes the equitable “made whole” doctrine to circumvent a party’s contractual right to subrogation.

2. A trial court may not cut a party out of a settlement where the settlement purports to resolve that party’s claim, and the party participated in the proceedings and requested an allocation.

As the court of appeals’ decision runs counter to both these principles, we reverse its judgment and remand to the trial court for further proceedings consistent with this opinion.

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