Stephanie Riley v. State Farm Mutual Automobile Insurance Company

Summary

The court held that Riley's challenge to State Farm's asserted subrogation right stated a viable claim and that the circuit court erred by dismissing Count I. Although Riley acquiesced in the procedural course that led to dismissal, the dismissal was substantively erroneous because an insurer's subrogation lien cannot attach until the insured receives the recovery and is determined to have been made whole, either by agreement or judicial determination. Chief Justice Hannah, joined by Justice Henry, concurred in the reversal but emphasized that the parties may resolve the amount of subrogation by agreement and that State Farm had asserted a contingent reimbursement claim rather than filed a lien.