Callas v. City of Ottumwa

LARSON, Justice.

Jerry W. Callas, Jr. was injured when his motorcycle collided with a police car owned by the City of Ottumwa and operated by officer Rod Stevens. Callas sued Stevens and the City for damages, which included substantial medical expenses. The Department of Human Services (DHS), which had paid in excess of $125,000 toward Callas’ medical expense, filed a petition of intervention to assert its right of subrogation. See Iowa Code § 249A.6 (1987). The case was set for trial. Callas and the defendants settled the case prior to trial, but the settlement expressly provided that medical…