United States v. Automobile Club Insurance Company

RONEY, Circuit Judge:

The United States seeks reimbursement from the defendant insurance company for the cost of medical care provided to a veteran injured in an automobile accident. The defendant had issued to the veteran an automobile insurance policy with medical payments coverage. The district court held that Louisiana courts would deny recovery under the policy where no expense had been “incurred” by the insured, free medical services having been provided by the Government. We reverse and remand.

The Government argues that the district court erred in applying state law and that federal law…