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BARNES v. MISSION INS. CO.

No. 90-4145.

923 F.2d 53 (1991)

Roy BARNES and wife, Bonnie Lee Barnes, Plaintiffs-Appellants, v. MISSION INSURANCE COMPANY, Defendant-Third Party Plaintiff, v. HOUSTON GENERAL INSURANCE COMPANY, Third Party Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

February 4, 1991.

Attorney(s) appearing for the Case

Gregory A. Hoover and Nicholas H. Patton, Young, Patton & Folsom, Texarkana, Tex., for plaintiffs-appellants.

Phillip W. Gilbert, Brenda Neel High and Bern A. Mortberg, Riddle & Brown, Dallas, Tex., for third-party defendant-appellee.

Before GOLDBERG, KING and DUHÉ, Circuit Judges.

GOLDBERG, Circuit Judge:

This is a diversity action in contract. Appellants, an injured worker and his wife, settled with two insurers for $750,000. Appellants pledged in the settlement agreement that they would not settle with a third insurer unless the third agreed to release its claims against the first two. The appellants breached their agreement, settling with the third insurer for $450,000 without obtaining a release. The third insurer was then reimbursed by...

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