Please ensure Javascript is enabled for purposes of website accessibility

01-0991 Paulson, et al. v. Allstate Ins. Co., et al.

By: dmc-admin//July 1, 2002//

01-0991 Paulson, et al. v. Allstate Ins. Co., et al.

By: dmc-admin//July 1, 2002//

Listen to this article

“The Paulsons claim that, under the collateral source rule, they are entitled to receive from Allstate the full $7,042.44 that Midwest Security paid for car repairs, even though the Paulsons are no longer obligated to pay that amount to the repair shop.

Allstate contends that subrogation principles prohibit the Paulsons from receiving any of the $7,042.44 paid by Midwest Security. We reject the positions of both parties and break the dispute over this $7,042.44 amount into two parts: (1) the dispute over $4,929.71 paid by Allstate to Midwest Security to settle Midwest Security’s subrogation claim, and (2) the dispute over the remaining $2,112.73.”

“As to the $4,929.71, we agree with Allstate that denying the Paulsons this amount is consistent with subrogation principles. To the extent Allstate paid Midwest Security to compensate Midwest for money Midwest paid for repairs to the Paulsons’ vehicle, Allstate has already compensated the party with subrogation rights to the $4,929.71 of car repair expenses.

“Additionally, a key facet of the collateral source rule is that a plaintiff’s recovery cannot be reduced by payments or benefits from a source other than the tortfeasor. Koffman, 2001 WI 111 at ¶29. The corollary to this facet is that a tortfeasor, or the tortfeasor’s insurer, should not be required to pay an amount twice. Here, Allstate, as the tortfeasor’s insurer, has been held accountable for and paid $4,929.71.”

Affirmed in part, and Reversed in part.

Recommended for publication in the official reports.

Appeal from a judgment of the circuit court for Columbia County, George, J., Lundsten, J.

Attorneys:

For Appellant: James G. Schernecker, Madison

For Respondent: Richard G. Niess, Madison; Laura N. Whipple, Madison; David P. Renovitch, Madison

Polls

Should Steven Avery be granted a new evidentiary hearing?

View Results

Loading ... Loading ...

Legal News

See All Legal News

WLJ People

Sea all WLJ People

Opinion Digests