Subrogation – Bad Faith

By: Derek Hawkins//July 20, 2015//

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Civil

WI Court of Appeals – District IV
Officials: Lundsten, Higginbotham and Kloppenburg, JJ.

Subrogation – Bad Faith

2014-AP-157 Dennis D. Dufour v. Progressive Classic Ins. Co

Based on the undisputed facts presented on summary judgment, we first conclude that Dairyland has no subrogation rights under Valley Forge Ins. Co. v. Home Mut. Ins. Co., 133 Wis. 2d 364, 396 N.W.2d 348 (Ct. App. 1986), because Dufour has not been made whole considering his total loss. We further conclude that Dairyland acted in bad faith when it denied Dufour’s claim to the funds at issue. Accordingly, Dufour is entitled to summary judgment in his favor on both his claim to the subrogated property damage funds and his bad faith claim. Therefore, we affirm the circuit court’s order in part and reverse it in part, and remand for proceedings on Dufour’s damages, including punitive damages, in regard to his bad faith claim.

Decision

Affirmed in Part. Reversed in Part. Remanded. Per Curiam.

Full Text

Attorney Derek A. Hawkins is the managing attorney at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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