Supreme Court Decides Subrogation Case Involving Choice of Law Issues
Moad v. Dakota Truck Underwriters , 831 NW2d 111 (Iowa 2013), involved the question of what law to apply (the law of Iowa or South Dakota) to determine whether a South Dakota WC carrier was entitled to subrogation for payments made to its insured by underinsured and uninsured carriers arising out of a settlement from third-party litigation. Claimant died when the truck he was driving for his employer was struck by another vehicle near Iowa City. WC benefits were paid under South Dakota law. Claimant's wife filed a third party action in Iowa District Court. Claimant's wife and children were South Dakota residents. The WC carrier notified the parties that it was entitled to subrogation of any proceeds received by plaintiff as a result of the third party action. A settlement agreement was reached with Northland agreeing to pay $300,000, plus $100,000 to cover the workers' compensation carrier's subrogation lien. Plaintiff agreed to file a motion to strike...