Carnathan v. Farm Bureau Insurance

David Newbern, Justice.

The appellant, Karen Carnathan, was injured in an automobile accident. She sued the driver of the other vehicle involved in the collision and ultimately settled for $25,000. Ms. Carnathan was represented by an attorney to whom she paid a contingency fee of one-third of her recovery.

During the settlement negotiations some of Ms. Carnathan’s medical expenses were paid by her insurer, the appellee, Farm Bureau Insurance Company, in the amount of $2,402.59. The accident occurred on December 24,1980. Farm Bureau made the payment to Ms. Carnathan and her attorney on June 14,…