Adams v. State Farm Mut. Auto. Ins. Co.

The insurer was entitled to set off the insured's uninsured motorist coverage by the full $25K paid from the tortfeasor's insurance carrier, even though part of the payment was used to pay off the insured's hospital bill.

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This appeal addresses the amount State Farm Mutual Automobile Insurance Company owes in uninsured motorist benefits to Randolph Adams, an insured who was seriously injured in a car wreck with Hilde Orheiu. The facts are undisputed. Adams sued Orheiu to recover for injuries sustained in the car wreck. During the course of the underlying litigation, Nationwide Insurance Company, Orheiu’s automobile liability insurer, made two payments that exhausted its $25,000 policy limits: 1 payment in the amount of $9,217.66 to Grady Hospital to compromise its hospital lien for Adams’ medical services, and 2 payment in the amount of $15,782.34 to Adams for a limited release. Adams then sought additional compensation for his injuries from State Farm, which insured Adams for $100,000 uninsured motorist coverage. However, a dispute arose as to the applicable amount of State Farm’s coverage. State Farm contended it should be able to set off or take credit for the entire $25,000 that Nationwide had paid as its total liability coverage. Adams contended that State Farm should only get credit for the $15,782.34 paid to him personally, and not the $9,217.66 paid by Nationwide directly to Grady Hospital. Both parties filed motions for summary judgment. The trial court denied Adams’ motion and granted State Farm’s motion, allowing State Farm credit for the entire $25,000 paid by Nationwide. We find no error and affirm the trial court’s order.

Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law.1 We review the grant of summary judgment de novo and view the evidence, and all reasonable conclusions and inferences drawn from them, in the light most favorable to the nonmovant.2

Adams v. State Farm Mut. Auto. Ins. Co.

The insurer was entitled to set off the insured's uninsured motorist coverage by the full $25K paid from the tortfeasor's insurance carrier, even though part of the payment was used to pay off the insured's hospital bill.

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