THIS TECHNICAL STUFF

Still struggling to make this a more reader-friendly blog. Will be meeting with two web consultants over the next several days and hope that they can get me on the right path. The patience of those who are reading these entries(assuming that readers actually exist) is appreciated...

SUBROGATION DECISION

Interesting subrogation case out of the Fourth Appellate District. In American Family v. Cleveland, the defendant was a passenger in a car driven by Lakenya Champion. Champion was an American Family insured. American Family paid various medical expenses on behalf of Cleveland. Cleveland sued the driver of the other car and obtained a settlement. Not suprisingly, American Family wanted their money back. They sue Cleveland. At trial, the Court dismisses Counts I and II, where American Family alleged contractual subrogation and that Cleveland was a third party beneficiary. Court also found for Cleveland on the remaining count, equitable subrogation. Again, not suprisingly, American appealed.

On appeal, Cleveland argued that she wasn't liable for the medical payments because she wasn't a signatory to the contract, and thus, American couldn't enforce the contract against her(even if she was a third party beneficiary). The Appellate Court didn't buy it. The opinion noted that Cleveland wanted her cake and wanted to eat it too. The Court found that Cleveland couldn't accept the benefits of coverage under the contract and at the same time reject the subrogation rights under the same contract. The trial court was reversed.