Fortis Benefits v. Cantu

The issue in this insurance subrogation case is whether the equitable “made whole” doctrine — the rule that an insurer is not entitled to subrogation of medical benefits unless the insured has been “made whole” — trumps an insurer’s contract-based subrogation right.

After respondent Vanessa Cantu sued multiple parties for severe injuries she sustained in an auto accident, her medical insurer, petitioner Fortis Benefits, intervened, claiming a subrogation right under the policy. The various defendants settled with Cantu, and Fortis looked only to Cantu for its recovery. A divided court of…