Reed v. Bradley

¶ 1. Scott and Julie Reed were injured in an automobilé accident. Their medical expenses, which were stipulated to be $2,978, were paid by their insurer, State Farm Mutual Automobile Insurance Company. Prior to trial, the other driver's insurer, American Family Mutual Insurance Company, negotiated a settlement with State Farm in which State Farm accepted payment of 75% of the stipulated medical expenses, or $2,246, in exchange for assignment of its subrogation claim.

¶ 2. Liability and the amount of health care expenses were stipulated, leaving only pain, suffering and disability, and future…