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Underinsurance benefit payout doesn’t satisfy judgment

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The Indiana Court of Appeals held that the party at-fault in an auto accident is not entitled to benefit from the injured party’s “carefulness and assiduousness” in obtaining underinsured motorist insurance coverage.

The court reversed a ruling finding a $98,000 judgment against Alan Steady was satisfied after injured party Ronald Kern’s insurer, State Farm Mutual Automobile Insurance Co., paid out $68,000 in underinsured motorist benefits to Kern. A jury found Steady 100 percent liable for the accident and injuries Kern sustained, but Steady’s insurance policy was only for $25,000. State Farm also paid $5,000 for medical expenses.

After State Farm paid out the UIM benefits, Steady asked the trial court to deem his judgment satisfied. The trial court granted the request, leading to the appeal by State Farm.

Steady claimed State Farm couldn’t appeal because it wasn’t a party at the time judgment was entered against him, but Indiana’s Uninsured and Underinsured Motorist Coverage Act allows the company to be subrogated to the proceeds of the judgment against Steady. Therefore, State Farm has standing to appeal, the court held.

“When an insurer compensates its insured due to a third party tortfeasor being underinsured, the third party tortfeasor’s liability is not reduced. Rather, Indiana Code section 27-7-5-6(a) provides that the insurer may enforce its insured’s right of recovery against the third-party tortfeasor, either in its own name or in the name of its insured, and that the insurer shall then be subrogated to the proceeds of any settlement or judgment that results,” Chief Judge Margret Robb wrote. “To allow a judgment entered against the third-party tortfeasor to be deemed satisfied due to the insurer’s underinsured motorist payment to its insured would undermine the purpose of this statute.”

The case, State Farm Mutual Automobile Insurance Company, Alan Steady v. Richard Kern, 49A02-1201-CT-34, goes back to the trial court for further proceedings.

 

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  1. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  2. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  3. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  4. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  5. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

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