Interfirst Bank Dallas, N.A. v. United States Fidelity & Guaranty Co.

I dissent. I arrive at a different result by relying on controlling Texas law. The majority’s reliance on the equitable principles enunciated in Trinity Universal Ins. Co. v. Bellmead State Bank, 396 S.W.2d 163 (Tex.Civ.App.—Dallas 1965, writ ref’d n.r.e.), is misplaced because USF & G’s right to equitable subrogation did not arise until payment. Thus, for the reasons discussed herein, it is second in time to NCNB’s perfected legal right.

In Trinity Universal, the surety took over the project when the contractor became financially unable to continue. As a public relations matter, the…