Jerry Christensen v. Farmers Insurance

HALL, Chief Justice: Plaintiff designated this action as one to quiet title to the proceeds of a draft received from the liability insurer as part of a settlement agreement, made payable to the plaintiff, his attorney and the plaintiff's no-fault insurer, Farmers Insurance Exchange (Farmers). The trial court dismissed the plaintiff's complaint, dismissed the third-party complaint brought by Farmers against the liability insurer, State Farm Mutual Auto Insurance Company (State Farm), and directed the no-fault insurer to pursue its subrogation rights by settlement or arbitration. Plaintiff appeals and seeks to have the decision of the trial court vacated. We affirm. Plaintiff sustained personal injuries as the result of a collision that occurred in Provo, Utah, on August 12, 1976. Plaintiff was stopped for a red semaphore light when the tortfeasor hit plaintiff's car from the rear, propelling it into the vehicle stopped directly ahead. Pursuant to his no-fault insurance policy with Farmers, plaintiff received personal injury protection benefits (PIP) in the amount of $17,194.95. Since plaintiff's damages exceeded the threshold limitations controlling tort actions against a tortfeasor, 1 plaintiff sought recovery from the tortfeasor and his liability insurer, State Farm. Farmers subsequently filed notice on State Farm of its subrogation claim for the PIP benefits already paid to plaintiff. Farmers also notified plaintiff's attorney that he was not to purport to represent Farmers' interest, which notice plaintiff's attorney apparently ignored.