Elbaor v. Smith
Supreme Court of Texas
845 S.W.2d 240 (Tex. 1992)
Smith (plaintiff) sued multiple doctors and hospitals for medical malpractice after her ankle joint fused following treatment; she settled with several defendants (Dr. Syrquin, Dr. Stephens, and a hospital) under "Mary Carter" agreements that paid her a total of $425,010 while keeping them as defendants of record, entitled to reimbursement from any recovery against the sole remaining defendant, Dr. Elbaor (defendant). Elbaor moved to void the agreements as against public policy, but the trial court denied the motion; a jury found Elbaor 88% at fault and Syrquin 12% at fault, awarding $2.25 million, and after crediting the settlement amounts, Elbaor owed roughly $1.87 million. The court of appeals affirmed, and Elbaor appealed.
Whether Mary Carter settlement agreements, in which settling defendants remain parties and are reimbursed from any judgment against remaining defendants, are void as against public policy.