Made Whole Doctrine

Listen to this article

WI Supreme Court

Case Name: Dennis D. Dufour v. Progressive Classic Insurance Company et al.

Case No.: 2014AP157

Focus: Made Whole Doctrine

Made whole doctrine did not preclude insurer from retaining funds it received from its subrogation claim.

“As we have explained above, Dairyland paid Dufour every dollar to which he was entitled under its policy. Therefore, Dairyland did not breach its insurance contract. That Dairyland sought and obtained subrogation for payments it made to Dufour is not in contravention of the parties’ contract. Quite to the contrary, Dairyland’s policy specifically provided, “[a]fter we have made payment under this policy and, where allowed by law, we have the right to recover the payment from anyone who may be held responsible.” As insurer of the tortfeasor, American Standard was a person who may be held responsible for the tortfeasor’s negligence and it was from American Standard that Dairyland obtained subrogation. Accordingly, we conclude that Dairyland did not act in bad faith by retaining the funds it obtained as subrogation.”

Reversed

Concurring:

Dissenting: ABRAHAMSON, J. and BRADLEY, A. W., J. concur and dissent (Opinion filed).

Full Text

Attorney Derek A. Hawkins is the managing partner 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.