Paul v. State Farm Mut. Automobile Ins. Co.
- Case Date: 8/28/2014
- Project Name: Civil Justice Reform
On January 6, 2015, the U.S. Court of Appeals for the Sixth Circuit issued a decision that rejected efforts by the plaintiffs’ bar to undermine the subrogation rights of insurance companies. The decision was a victory for WLF, which filed a brief arguing that recognition of broad subrogation rights leads to lower policy rates and decreases the chance that loss-causers will escape liability. The suit was filed by an insurance policy holder who, following an auto accident, recovered medical expenses from his own insurance carrier and then won a tort judgment against the other driver. The insured argued that he was entitled to keep medical compensation paid by the other driver’s liability carrier pursuant to the tort judgment, thereby providing him with a “double recovery.” The court disagreed, concluding that the standard insurance policy language at issue here entitles the insurer to reimbursement out of funds paid by the tortfeasor’s liability insurance carrier.
More Information and Downloads:
8/28/2014: Download the Brief