Hart v. State Farm Mutual Automobile Insurance Co.

ZASTROW, Justice.

This action was brought by the plaintiffs to recover medical expenses under an automobile insurance policy issued by the defendant, State Farm Mutual Automobile Insurance Company (State Farm). State Farm denied coverage under the policy because the plaintiffs had negotiated a settlement and signed a release and indemnity agreement for the third-party wrongdoer. The release was in violation of the subrogation clause of the insurance contract. The trial court held that the subrogation clause in the insurance policy was invalid, and the defendant has appealed from the judgment…