Issue: After the insured, under an auto policy, settled his claim against the other party and signed a release, he filed his claim with his own auto company for medical expenses in the amount of $541.35 under his Medical Payments endorsement. The company denied liability in view of the release, and the only question before the court was whether the insured was barred from recover under the Medial Payments coverage of his own policy because of the release given the other party.

Judgment: The insured had settled his claim against the other party for $4,000 and executed a general release. His own policy provided coverage for medical payments up to $2,000, but also provided that the company was to be subrogated to the insured’s rights against the tortfeasor. The policy further stated that the insured would do nothing which would prejudice the company’s rights.

The trial court entered summary judgment in favor of the company and the insured appealed on the ground that the Subrogation clause was invalid since it attempted to assign a claim for personal injuries which was not permitted under common law.

On appeal, the higher court ruled that the Subrogation clause was valid, and the execution of a general release by the insured prevented recovery under the Medical Payments endorsement. The judgment entered in the low court was affirmed.

Higgins vs. Allied American Mutual Fire Insurance Co. – District of Columbia, Court of

Appeals – January, 19, 1968 (Rough Notes Magazine, December 1970)