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  5. 930 S.W.2d 196 (1996)
 

AMERICAN STATES INS. CO. v. ARNOLD

No. 05-95-00706-CV.

930 S.W.2d 196 (1996)

AMERICAN STATES INSURANCE COMPANY OF TEXAS, Appellant, v. Eoline Smith ARNOLD and American Fire & Indemnity Insurance Company, Appellees.

Court of Appeals of Texas, Dallas.

Rehearing Overruled September 23, 1996.

Attorney(s) appearing for the Case

E. Thomas Bishop, Mark D. Johnson, Alexander N. Beard, Dallas, E. Thomas Bishop, P.C., for Appellant.

Mary Lou Flynn-Dupart, Fred A. Simpson, Jackson & Walker, L.L.P., Houston, for Appellee.

Before OVARD, JAMES and HANKINSON, JJ.

OPINION

HANKINSON, Justice.

This case involves a dispute between two insurance companies concerning the duty to defend an underlying automobile accident lawsuit. American Fire & Indemnity Insurance Company ("American Fire"), as assignee and subrogee of the rights of Eoline Smith Arnold, American Fire's insured, filed a lawsuit against American States Insurance Company of Texas ("American States"), alleging that American States breached its duty to defend...

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