Allstate Insurance Co. v. Anderson

608 P.2d 235, 1980 Utah LEXIS 884

Opinions

STEWART, Justice:

Plaintiff, Allstate Insurance Company, brought this action to recover no-fault insurance benefits paid to its insured, the defendant, following a settlement between the defendant and the insurance carrier of a third-party tortfeasor.

In January 1976 defendant, a passenger in a vehicle insured by Allstate, was injured in an automobile accident. Pursuant to his claim, Allstate paid defendant $2,000 in no-fault medical benefits. Subsequently, defendant filed suit against the tortfeasor, who was insured by State Farm Mutual Insurance Company. Defendant entered into a settlement agreement with State Farm. On settlement of that suit defendant executed a release, and State Farm agreed to pay a settlement amount of $10,-000. Two thousand dollars of this amount was made payable jointly to defendant and Allstate. Defendant refused to deliver the draft, and Allstate initiated this action.

The issue is whether Allstate is entitled, because of a right of subrogation, to recover the no-fault payments made to its insured out of proceeds of a settlement with a third-party tortfeasor.

We hold that Allstate Insurance Co. v. Ivie, Utah, 606 P.2d 1197 (1980), is disposi-tive of this case.

The judgment in favor of defendant is affirmed. Costs to Respondent.

MAUGHAN and WILKINS, JJ., concur.