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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. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  2. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  3. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

  4. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

  5. This article proved very enlightening. Right ahead of sitting the LSAT for the first time, I felt a sense of relief that a score of 141 was admitted to an Indiana Law School and did well under unique circumstances. While my GPA is currently 3.91 I fear standardized testing and hope that I too will get a good enough grade for acceptance here at home. Thanks so much for this informative post.

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