USF&G v. USSSA, 2012 UT 3

Tyson B. Snow

Case Conclusion Date:January 13, 2012

Practice Area:Insurance

Outcome:In favor of USSSA

Description:The United States District Court for the District of Utah certified three questions to the Utah Supreme Court:(1) Does an insurer have a right to reimbursement or restitution against an insured? (2) If an insurer does have a right to reimbursement or restitution against an insured, are there any prerequisites to receiving such a right? (3) And finally, if such a right exists, does an insurer’s payment in excess of a policy’s limit impact any such right? The Utah Supreme Court concluded that an insurer may obtain the right to reimbursement from its insured only when the right is expressly provided in their insurance agreement, and therefore the other two questions were moot. I represented USSSA in successfully arguing that the insurer, USF&G, could not seek reimbursement from USSSA because there was no reimbursement provision in their insurance agreement.