January 2019 Subrogation Newsletter

Recovery of loss of use is a key element of auto property subrogation. Loss of use coverage usually provides a replacement (rental) vehicle or transportation reimbursement while the insured’s vehicle is being repaired or replaced following a covered loss. States differ as to whether and when a vehicle owner is allowed to recover the value of loss of use of a vehicle during the time a damaged vehicle is being repaired or replaced. Whether you’re a vehicle owner, fleet manager, or insurance claims professional looking to enforce subrogation rights, thoroughly understanding the ramifications and parameters of loss of use claims in all 50 states can make the difference between a large recovery and no recovery at all. This article links to our new 50-state reference chart on Loss of Use In All 50 States.

It seems strange to suggest that one of history’s greatest military battles would have anything in common with modern insurance subrogation, but modern claims and subrogation handling require a symbiosis similar to that utilized by the Greek hoplites. Especially in companies with separate claims and recovery departments, subrogation victory depends on cooperation and the ability to depend on others in the claims chain. Successful subrogation recoveries heavily depend on the protection provided by the claims soldier standing to their left. There must be open and frequent communication between insurance professionals with the single objective of a successful subrogation victory in mind.

On January 11, 2019, the Texas Court of Appeals issued an opinion that will have a profound effect on Texas workers’ comp subrogation. Until now, alleged employer negligence hasn’t been a factor in negotiating workers’ comp liens in Texas. Not only does this ruling run contrary to the clear language of the statutes, it opens the door for Texas plaintiff’s attorneys to concoct theories of employer negligence and argue that your “lien” can now be eliminated based on employer negligence. If the decision stands, Texas will join the ranks of other states whose laws allow the carrier’s lien to be reduced when the employer is at fault.

Matthiesen, Wickert & Lehrer, S.C. is pleased to announce that Mingmei Zhu has joined our insurance litigation team as an associate attorney in our Wisconsin office. Mingmei is licensed to practice in California. Her practice will focus on insurance litigation, especially nationwide insurance litigation involving product liability relating to foreign manufacturers, and health insurance subrogation. She is from Changsha, China, a “small” town of 7.5 million people in central China’s Hunan province. She is fluent in Mandarin and brings her skills and experience to bear on MWL’s insurance litigation and product liability cases against foreign manufacturers.

Ashton Kirsch, an attorney at MWL, will be presenting a live webinar on “Subrogation Magic: Creating Something Out of Nothing – MCS-90 Claims Against Uninsured Operators” on March 5, 2019 at 10:00 to 11:00 a.m. (CST). As with all MWL live webinars, they are free to attend and provide Texas CE credits. To learn more about this webinar and/or register for it, click HERE.