State Farm Fire and Casualty Company, Petitioner v. Julie Kathleen Gandy

Summary

The Texas Supreme Court reversed the Court of Appeals and held that the assignment of Ted Pearce's claims against State Farm to Julie Gandy was void as it violated public policy, so Gandy receives nothing. The Court affirmed that such assignments are invalid when made before adjudication of the plaintiff's claim and after the insurer has tendered a defense. Justice Enoch filed a concurring opinion agreeing with the judgment.