State Farm Mut. Ins. Co. v. Farmers Ins. Exchange, 12442

• Decision Date: 07 February 1972
• Docket Number: No. 12442,12442
• Citation: 493 P.2d 1002,27 Utah 2d 166
• Parties: d 166 STATE FARM MUTUAL INSURANCE COMPANY, Plaintiff and Respondent, v. FARMERS INSURANCE EXCHANGE, Defendant and Appellant.
• Court: Utah Supreme Court

Page 1002

493 P.2d 1002

27 Utah 2d 166

STATE FARM MUTUAL INSURANCE COMPANY, Plaintiff and Respondent, v. FARMERS INSURANCE EXCHANGE, Defendant and Appellant.

No. 12442.

Supreme Court of Utah.

Feb. 7, 1972.

Don J. Hanson, Salt Lake City, for defendant and appellant.

L. L. Summerhays, Salt Lake City, for plaintiff and respondent.

TUCKETT, Justice:

The plaintiff commenced these proceedings to recover medical payments in the sum of $844.64 made by State Farm Mutual Insurance Company to Louise Castleberry. The court below entered judgment in favor of the plaintiff and the defendant is here seeking a reversal of that decision.

On November 6, 1966, Louise Castleberry was a passenger in an automobile being operated by Vernon L. Hall at the time it was involved in an accident with an automobile being driven by Evert Dykhuizen. At that time the Hall vehicle was insured by State Farm Mutual Insurance Company and the Dykhuizen vehicle was insured by Farmers Insurance Exchange.

Pursuant to the medical provisions of the policy State Farm Mutual Insurance Company paid medical bills incurred by Louise Castleberry in the sum of $844.64. Louise Castleberry made a claim against the defendant's insured and on his behalf the defendant settled the claim. This settlement included reimbursement to Louise Castleberry for the medical expenses she had incurred by reason of her injuries and a general release was taken. Prior to the settlement State Farm Mutual Insurance Company had notified Farmers Insurance Exchange of its claimed right for reimbursement of the medical expenses paid by it pursuant to the subrogation provisions of its policy.

It is the defendant's contention in these proceedings that no right of subrogation existed with respect to medical payments before the decision handed down by this court in the case of State Farm Mutual Insurance Company v. Farmers Insurance Exchange, found in 22 Utah 2d 183, 450 P.2d 458 (1969). The holding in that case was to the effect that an insurer may be subrogated with respect to medical expenses paid to its insured where notice of its claim for reimbursement was given to the other insured prior to settlement.

Defendant does not quarrel with the decision of the court in the prior case but it claims that the decision substantially changed the law of subrogation in this jurisdiction and should be given prospective effect only. The defendant argues that prior to the decision above referred to the Utah decisional law was to the effect that the cause of action for personal injuries was not assignable and that insurers could not be subrogated to the...