ELLIOTT GOLDBERG, APPELLANT,
v.
STATE FARM AUTOMOBILE MUTUAL INSURANCE COMPANY, APPELLEE

Fla. 4th DCA | 2005-03-22
No. 4D05-367
MAY, J„ and SWEET, GARY L„ Associate Judge, concur.
922 So. 2d 983 Florida District Court of Appeal, Fourth District (2005) Positive Treatment
Cited by 4 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

State Farm sought subrogation against Goldberg for $10,000 it paid to Goldberg's injured passenger after an accident involving State Farm's insured. The court reversed the trial court's judgment, holding that State Farm failed to prove it satisfied the injured party's entire claim and failed to obtain a release from Goldberg, both essential elements for subrogation.


Holding

State Farm was not entitled to subrogation because it failed to prove that it paid all of Yeager's damages and failed to obtain a release of Goldberg. The doctrine of subrogation in tort cases is limited to situations where the party seeking subrogation has obtained a release from the other party responsible for the debt.


Headnotes

[1] A subrogee must prove that the entire debt was paid to establish a claim for equitable subrogation.

[2] A subrogee must obtain a release of the party against whom subrogation is sought to recover for damages paid to a third party.

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Key Quotes

“To state a cause of action for equitable subrogation, the allegations of the complaint must demonstrate that: "(1) the subrogee made the payment to protect his or her own interest, (2) the subrogee did not act as a volunteer, (3) the subrogee was not primarily liable for the debt, (4) the subrogee paid off the entire debt, and (5) subrogation would not work any injustice to the rights of a third party."”

States the five-element test for equitable subrogation that State Farm failed to satisfy

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Facts & Procedural History

Goldberg was involved in an accident with Justin Keyser, who was insured by State Farm. Goldberg's passenger, Louis Yeager, was injured in the acciden…

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Opinion of the Court
WARNER, J.

WARNER, J.

Elliott Goldberg timely appeals a final judgment in favor of State Farm Automobile Mutual Insurance Company arising out of a subrogation claim for bodily injury damages. Because State Farm failed to prove that the entire claim for personal injuries was satisfied, and did not obtain a release of Goldberg from the injured party, it was not entitled to subrogation. We therefore reverse.

Goldberg was involved in an accident with State Farm’s insured, Justin Keyser. As a result of the accident, Goldberg’s passenger, Louis Yeager, was injured. State Farm paid Yeager $10,000 and obtained a release of Keyser but not Goldberg. It then sued Goldberg for the $10,000 it had paid to Yeager. At trial, State Farm asserted a subrogation claim against Goldberg.1 The trial consisted of witnesses who were called to establish Goldberg’s sole negligence in causing the accident, an intersectional collision involving the question of who had the green light. State Farm’s adjuster also testified that Yeager had made a demand on Keyser’s policy, and the company decided to pay to get a release of Keyser. No evidence was presented regarding Yeager’s injuries and the amount of his damages. After hearing the evidence, the court ruled that State Farm and Keyser were entitled to subrogation against Goldberg, and the court entered judgment accordingly.

The issue presented in this case is whether the payment by State Farm to Yeager entitles State Farm to subrogation from Goldberg.

To state a cause of action for equitable subrogation, the allegations of the complaint must demonstrate that: “(1) the subrogee made the payment to protect his or her own interest, (2) the subrogee did not act as a volunteer, (3) the subrogee was not primarily liable for the debt, (4) the subrogee paid off the entire debt, and (5) subrogation would not work any injustice to the rights of a third party.”

Pac. Ins. Co., Ltd. v. Botelho, 891 So. 2d 587, 590 (Fla. 3d DCA 2004) (quoting Dade County School Bd. v. Radio Station WQBA, 731 So. 2d 638, 646 (Fla.1999)). The doctrine of subrogation in tort cases is limited “to situations where the party seeking subrogation has obtained a release for the other party responsible for the debt.” Welch v. Complete Care Corp., 818 So. 2d 645, 648 (Fla. 2d DCA 2002).

Here, State Farm did not prove that it paid all of Yeager’s damages or that it obtained a release of Goldberg for Yeager’s damages. Therefore, having failed to establish two of the elements required to prove subrogation, the court erred in awarding a judgment for the $10,000 that State Farm paid to Yeager. Reversed.

MAY, J„ and SWEET, GARY L„ Associate Judge, concur. . State Farm actually pled a claim for contribution for Yeager’s damages. However, at trial the court determined that there was no claim for contribution, but permitted State Farm to proceed on the claim as a subrogation claim.


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Citator

Cited By

  • …d not act as a volunteer;” (3) that it “was not primarily liable for the debt;” (4) that it paid off the entire debt; and (5) that subrogation “would not work any injustice to the rights of a third party.” Goldberg v. State Farm Auto. Mut. Ins. Co., 922 So. 2d 983, 984 (Fla. 4th DCA 2005) (quoting Pac. Ins. Co. v. Botelho, 891 So. 2d 587, 590 (Fla. 3d DCA 2004)). Under Florida law, a separate cause of action for equitable subrogation is the preferred way to address the situation presented in this case, where…
  • …. See U.S. Fid. & Guar. Co. v. Essex Ins. Co., 188 So. 3d 906, 907 (Fla. 1st DCA 2016) (no equitable subrogation where excess insurer “did not pay the entire settlement in the underlying tort litigation”); Goldberg v. State Farm Auto. Mut. Ins. Co., 922 So. 2d 983 (Fla. 4th DCA 2005) (insurer that paid insured’s passenger not entitled to subrogation against second driver where it did not show that it paid all of the passenger’s damages and obtained release of second driver); Collins v. Wil- [*786] cott, 578 S…

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