Holmes Regional Medical Center, Inc. v. Allstate Insurance Co.

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A party that has had judgment entered against it is not entitled to seek equitable subrogation from a subsequent tortfeasor when the judgment has not fully been sustained. Benjamin Hintz was injured when his scooter collided with an automobile driven by Emily Boozer. The car belonged to Boozer’s father, Otto, who was insured by Allstate. Petitioner, guardian of Hintz’s property, filed suit against the Boozers. The jury found the Boozers liable for Hintz’s injuries, ultimately awarding Petitioner $11,179,189. Allstate paid $1.1 million, its policy limit, but the Boozers did not pay the remainder of the judgment. Following the personal injury verdict, Petitioner filed a separate medical malpractice suit against medical provider defendants, alleging that Hintz’s injuries were exacerbated by medical negligence. Allstate and Emily Boozer filed complaints claiming they were entitled to equitable subrogation from the medical provider defendants. The trial court dismissed the complaints with prejudice. The Fifth District Court of Appeal reversed. The Supreme Court reversed and remanded the case to reinstate the dismissal of the equitable subrogation claims, holding that the Fifth District erred in holding that Respondents could assert claims for contingent equitable subrogation without first paying the judgment in full. View "Holmes Regional Medical Center, Inc. v. Allstate Insurance Co." on Justia Law