Mohn v. Kohlruss

Opinion

SABRAW, J.

Farmers Insurance Exchange (Farmers) appeals from an order approving the compromise of a minor’s claim. In view of the ambiguity of the proceedings below, in which Farmers fully participated, we cannot say that the trial court erred. Accordingly, we affirm.

Facts

Plaintiff is the minor child of William Mohn, with whom she resides. She filed the complaint in this action through a guardian ad litem, seeking damages for personal injuries suffered in an automobile accident. Shortly thereafter she petitioned for an order approving a compromise of the claim. The petition stated that an agreement had been reached with Farmers, the defendant driver’s insurer, by which Farmers would pay its policy limits of $100,000 less sums it had already paid “for the benefit of said minor.” It

[597]

further stated that Farmers had already paid $25,000 to plaintiff’s father, but that the parties did not agree on the treatment of these payments: Farmers contended that the full amount “should be deducted from its offer of $100,000,” while plaintiff contended that the deduction should be limited to the $11,211.54 which had gone toward plaintiff’s medical expenses. The petition further stated that the parties were “agreeable to having the Court decide what amount be deducted from the $100,000 offer should the Court otherwise approve the compromise. . . .”

Farmers did not deny any of the averments of the petition. However, it filed a memorandum noting an outstanding “problem,” namely, “Whether Farmers is entitled to credit against its policy limits settlement offer of the full $25,000 . . . or . . . only those sums used to pay medical expenses.” The memorandum concluded with the request “that the settlement agreement be approved as set forth in the petition with the proviso that Farmers is entitled to a credit in the amount of $25,000.” At the hearing on the petition, Farmers expressly stipulated to submit to the court the issue of the amount of credit to be allowed.

1

The court approved the compromise and ruled that “[o]nly the sum of $11,211.54 is recognized as a credit against Farmers’ obligation to pay $100,000 in compromise of the minor’s claim.” Farmers filed this appeal.