Litigation: Commercial; Insurance; Real Estate; Procedure

Nathan A. Watson Company v. Employers Mutual Casualty Company

Fort Worth – 2/1/07 – 2-06-009-CV

Justice McCoy

Insurers’ Subrogation extended to liabilities as well as rights.

P&D entered into an agreement for the sale and purchase of residential lots. P built homes on the lots, and a number of the homes developed foundation problems. P, using insurance monies from its insurers, either repurchased damaged homes or repaired them. Litigation ensued, and P’s insurers asserted subrogation rights against D. A jury found for D on all counts and awarded attorney’s fees. On appeal the insurers argued, unsuccessfully, that they were subrogated to the rights of P-builder but not its liabilities. Held: That portion of the trial court’s judgment denying D’s request for attorney’s fees was reversed and remanded for the apportionment of the $538,000 in attorney’s fees as between the 2 insurers.