State Farm County Mutual Insurance Company Texas v. Dr. Phillip C. Ollis

Dr. Phillip C. Ollis treated an automobile accident victim and received an assignment of the victims rights to receive money from State Farm, but not an assignment of any part of the cause of action against the insured. Dr. Ollis then brought suit asserting his rights as the assignee of a third party beneficiary under a liability insurance policy issued by State Farm. The trial court granted summary judgment that Dr. Ollis recover $4,461.00 from State Farm County Mutual Automobile Insurance Company. The court of appeals affirmed with one justice dissenting. 754 S.W.2d 781. In Great American Ins. Co. v. Murray, 437 S.W.2d 264 (Tex. 1969), we held that a party injured by the insured is a third party beneficiary of a liability insurance policy. However, he cannot enforce the policy directly against the insurer until it has been established, by judgment or agreement, that the insured has a legal obligation to pay damages to the injured party. Id. at 265. Because the judgment of the court of appeals conflicts with this holding in Murray, a majority of the court reverses and, without argument, renders judgment that Dr. Ollis take nothing, pursuant to Tex. R. App. P. 133(b).