Excess Underwriters at Lloyd’s, London and Certain Companies Subscribing Severally But Not Jointly to Policy No…

Summary

The Texas Supreme Court affirmed the Court of Appeals, holding that the excess underwriters are not entitled to reimbursement for the settlement payment because Texas law requires the insured’s clear and unequivocal consent to both the settlement and the insurer’s right to seek reimbursement, which was not present here; the Court also declined to apply Louisiana law, finding no difference from Texas law. Justice Hecht and Justice Wainwright dissented, arguing that reimbursement should be allowed under unjust enrichment or that the settlement condition created an enforceable contract.