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Judges affirm reduction of subrogation lien

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The Indiana Court of Appeals rejected State Farm Insurance Company’s argument that its subrogation lien regarding one couple’s policy shouldn’t be reduced based on State Farm’s refusal in a policy held by another family to pay the full amount of the couple’s claim following a car accident.

Joel Genth was driving his father’s car, which was insured with a State Farm policy (Policy 2) when his car hit Thomas Young’s vehicle. Young was injured and received treatment. His medical insurance company Ingenix and his State Farm policy (Policy 1) paid for those treatments.

The Youngs sued Genth and his father for damages and listed two subrogation liens totaling $24,276.61. State Farm, on behalf of the Genths, offered to settle the Youngs’ claims for $17,432. The Youngs then filed a motion to reduce the subrogation liens pursuant to Indiana Code 34-51-2-9. They claimed they should only be responsible for 17.43 percent of the value of each subrogation lien because they were only receiving that percentage of the Genths’ $100,000 policy limit.

Policy 1 agreed to reduce the amount of its lien from $5,000 to $3,250 but not to reduce the lien to 17.43 percent of its value. The trial court ordered State Farm to accept $581 for Policy 1, which is 17.43 percent of the value of the original subrogation lien, minus its pro rata share of attorney fees and litigation expenses.

“In light of the unusual facts before us, i.e., that State Farm issued both Policy One and Policy Two, we decline to adopt State Farm Policy One’s premise that its subrogation lien should not be reduced based on State Farm Policy Two’s refusal to pay the full amount of the Youngs’ claim. The purpose of subrogation is to avoid unjust enrichment,” Judge Meliss May wrote in State Farm Insurance Company v. Thomas A. Young and Mary E. Young, Joel P. Genth and Philip K. Genth, INGENIX 92A05-1205-CT-258.

“State Farm paid under Policy One for some of the Youngs’ damages, and thus was entitled to a subrogation lien. But ‘the one primarily liable,’ Wirth, 950 N.E.2d at 1216, and who ‘in good conscience should have been’ paying, id., was State Farm under Policy Two. Therefore, to allow State Farm to recover the full value of its subrogation lien under Policy One, when State Farm did not pay the full value of Youngs’ claim under Policy Two, would unjustly enrich State Farm.”
 

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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