Ryder v. State Farm Mutual Automobile Insurance Co. and Ronald Froud, 371 Ark. 508

Summary

The Arkansas Supreme Court held that an insurer's statutory right to reimbursement under Arkansas Code Annotated § 23-89-207 constitutes statutory subrogation and is subject to the made-whole doctrine. Because a factual issue remained regarding whether the insured was fully compensated by the settlement, the court reversed the grant of summary judgment for State Farm and remanded for further proceedings.

Holdings

1. The right to reimbursement under Arkansas Code Annotated section 23-89-207 is a right of subrogation vested in the insurer and established by statute.
2. The made-whole doctrine applies to an insurer's reimbursement claim and statutory lien under Arkansas Code Annotated section 23-89-207; the insurer is not entitled to subrogation until the insured has been fully compensated for the loss.
3. Summary judgment for State Farm was improper because a genuine issue of material fact remained regarding whether Ryder was made whole by the $15,000 settlement.

Questions Presented

1. Whether State Farm's right to reimbursement under Arkansas Code Annotated section 23-89-207 is a statutory right of subrogation.
2. Whether the made-whole doctrine applies to an insurer's reimbursement claim and statutory lien under section 23-89-207.
3. Whether summary judgment was proper when a factual question remained regarding whether Ryder had been made whole by the settlement.

Disposition

reversed_and_remanded