Hospital Fights State Farm's Car Crash Settlement Practice

Law360, Dallas (September 20, 2013, 7:28 PM EDT) -- The Texas Supreme Court on Friday agreed to hear a hospital’s argument that State Farm Mutual Insurance Co. of Texas failed to resolve liens it filed against the recovery of two car crash victims it treated when it signed settlement checks to the victims and hospital jointly.

McAllen Hospitals LP, the operator of McAllen Medical Center, contends State Farm should have paid it directly, instead of writing a joint check to each victim that allowed the hospital’s former patients to deposit the full settlement without contributing...
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