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York Ins. Group of Maine v. Van Hall
704 A.2d 366
Me.
1997
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*1 ly, we conclude that 1997 ME 230 Bаl- predicating erred in its admission of MAINE YORK INSURANCE GROUP OF testimony about alcohol use on lard’s HGN 2525(2). § 29-A M.R.S.A. HALL.

Carol VAN Notwithstanding the court’s Supreme Judicial Court of Maine. rationale, however,

mistaken the HGN testi mony properly Although the admitted. Argued Sept. independent finding of the court made no 12, 1997. Decided Dec. test, reliability recently of the HGN we held judicial that we take notice of the would

reliability making tests in determina such probable

tions of cause to arrest and for purposes ‍‌​‌​​‌​‌​​‌​​‌‌​‌‌‌​​​‌​​‌​​​​‌​​‌‌‌‌​‌​​‌​‌​‌​‌‍establishing guilt operating Taylor,

under the influence cases.7 State v. ¶81, 10, 1997 ME 910. We id; may judicial appeal. take notiсe on 201(f).8 see also M.R. Evid. Taylor stated in that “the [¶ 18] We results should be of the HGN test admissible proper if a foundation is laid for their intro proper A foundation duction evidence. shall consist of evidence that the officer or

administrator of the HGN test is trained procedure properly and the test was ¶ Taylor, 1997 ME administered.” case, In 694 A.2d at 911-12. Ballard requisites. testified to these foundational Accordingly, judicial we take notice of the reliability.

test’s See id. The court did not admitting testimony. Ballard’s err HGN is: Judgment affirmed. 201(f) (that provides: "Judi- statutorily categorized drugs Evidence 8. Maine Rule of tended to mean is, drugs pursuant any ‍‌​‌​​‌​‌​​‌​​‌‌​‌‌‌​​​‌​​‌​​​​‌​​‌‌‌‌​‌​​‌​‌​‌​‌‍stage M.R.S.A. may scheduled to 17-A be taken at cial notice proceedings." recognize did not have the 7. We that the court Taylor, which was benefit of our decision in ruling the court’s in this case. decidеd after *2 Monaghan, (orally),

Noah D. Wuesthoff Portland, for Leahy, Libby, & Hoehadel plaintiff. Ferris,

Joseph (orally), Dearborn L. Ferris Brewer, for Willey, & defendant. Simmons, P.A, Macri, Paul Berman & F. Tremblay. Lewiston, Mary curiae for amici Leavitt, Freidman, Babcock H. Laurence Portland, Gaythwaite, amici curiae & Mutual Assurance Co. Middlesex C.J., ROBERTS, WATHEN, Before CLIFFORD, RUDMAN, DANA, and LIPEZ, JJ.

DANA, Justice. a sum- appeals Van Hall from

[¶ 1] Carol mary Superior entered in the J.) Brennan, (Cumberland County, Court Group Maine favor York Insurance it trial when contending that the court erred she was as a matter law that determined proportionate a share not to deduct entitled from funds due clause of pursuant subrogation York agree policy. аutomobile judgment. and vacate the accident, Following her automobile [¶2] $5,000 Hall’s medical paid York toward Van payment expenses pursuant medical policy. provision of her automobile insurance later settled claim $65,000 party responsible third signed release. After settlement general a from Van requested York reimbursement $5,000 pursu- ‍‌​‌​​‌​‌​​‌​​‌‌​‌‌‌​​​‌​​‌​​​​‌​​‌‌‌‌​‌​​‌​‌​‌​‌‍payment Hall for the medical contract’s ant the insurance attorney ten- Hall and provision.1 Van made has to recover provision 1. The relevant contract states: subrogated to we another shall be OUR SIGHT TO RECOVERPAYMENT right. That do: shall necessary us to enable Whatever is A. If rights; our exercise York, dered retaining one-third “Ordinarily, 337 N.W.2d ($1,650) prorated as a legal share of fees and where [an] insured recovers a reimburse- costs. York refused the offerеd ment of benefits for the no fault insurance complaint tortfeasor, and filed a from a the no fault in- seeking declaratory judgment that it company obligated had surance to contribute to *3 legal right pursuant policy to the insurance payment the of costs attorney and fees in- $5,000. to recover the full by At the conclusion curred in obtaining [the] insured the reim- discovery, parties of both filed motions for a company.” bursement the insurance 46A summary judgment. (1993). hearing After § the court C.J.S. Insurance 1636 granted summary judgment to York and adoption We [¶ 5] believe that of the pay ordered Van Hall to to York. common fund doctrine in Maine will in result We review the of a sum equitable a more relationship an between mary judgment law, for errors of viewing the company and its insured in eases evidence in a light most favоrable to the such as this. As one commentator has stat party against whom judgment the was en ed: Huotari, 41, tered. Kandlis v. 678 42 A.2d company lays When an insurance claim to (Me.1996). party A summary is entitled to a subrogation proceeds, obviously someone genuine there is no issuе of them, attorneys has to collect rarely and party undisputed material fact and the on the work for grossly inequitable free. It is facts is entitled to judgment as a matter of insured, expect claimant, an or in other the 56(c); Chadwick-BaRoss, law. M.R. Civ. P. process interest, protecting of his own Constr., Inc., Inc. v. T. Buck 627 A.2d protect company those of the [insurance] (Me.1993). 534 as well pay and still counsel for his labors out pocket, pro- of his own or out of the adopt [¶ 4] Van Hall asks us to the remaining ceeds of the funds. And this is “common fund” doctrinе in Maine.2 We do precisely by the view taken the over- join so majority jurisdictions the of that decisions, whelming majority of in that a have considered the issue.3 The common proportionate expenses share of fees and provides fund doctrine that when а fund is paid by must may be the insurer or be created to which party more than one is withheld from its share. party pay entitled each must a share of the expenses fund, in creating incurred the in Appleman Appleman, 8A John A. & Jean cluding 4903.85, reasonable § fees. See Fоre Insurance Law and Practice at Waters, (1981).4 most Ins. Mich.App. Co. 125 335 Life See, 2.Nothing prejudice e.g., Maloney, after loss to them. Amica Mut. Ins. Co. v. 120 general N.M. 903 P.2d 839 (1980) ly Attorneys § 7 Am.Jur.2d at policy B. If we Law 241 under this (citing recognize cases that the fund doctrine in is subrogated exception cases as an another, made recovers general rule that an cannot recover a that shall: against party by a third benefitted services proceeds 1. Hold in trust for us the client); Bock, Annotation, rendered J.A. recovery; and Subrogation Rights Pay Insurer Under Medical pay- 2. Reimburse us to the extent of our Policy, ments Provision Automobile Insurance ment. (1968 Supp.1996). 19 A.L.R.3d 1054 & opinion argument 2. We offer no on Van Hall's Legislature recog 4. We note that the has also that the clause should be held void propriety nized the of the common fund doctrine assignment portion as an unlawful aof of a recently passed legislation in this State and re personal injury claim. Because Van failed Hall quiring payment subrogation all future medical to direct the trial court's attention to this conten providе explicitly clauses that an “insurer’s summary judgment, tion in her motion for a she subrogation right subject is to subtraction to ac preserve appeal. failed to the issue for See Cuth prorata count share of the insured’s attor Co., Equipment bertson v. Clark ney’s obtaining recovety fees incurred in (Me. 1982) (strict liability plain P.L.1997, 317 n. 1 count in § from another source.” ch. complaint appeal tiff's (Pamph. could not be raised on at 24-A M.R.S.A. 2910-A codified court). pursued when it was not before the trial by unpersuaded are acknowledges that [¶ 6] York argument that allocation of exception is an to the York’s common fund doctrine terms of precluded by in this case attorney-client relationship an is a rule that policies Insurance attorney’s com the insurance contract. prerequisite an contеnds, liberally an insured construed favor of pensation. are The insurance however, is resolved any ambiguity in the contract if the fund doc that even common Maine, Ins. Co. Hall the insurer. Peerless recognized trine is to be Van Wood, necessary to requirements has not met the A.2d con meaning used language on In benefit from the doctrine. York relies Meadows, policy Marriage question is a of law. Id. The re N.W.2d 656 tracts (Iowa “If 1992), proposition York and states: for the order between apply must make for the doctrine to “notice be *4 made person the is

given subrogated to holder of interests that, another, that damages an recovers from that action has been commenced and action, join ... us to of our if holder to the shall the extent [reimburse the elects not the contract requested payment.” Equivalent be to holder insurance charge court will the ambiguous to as attorney provisions for of been held be reasonable fees the service have insured, in the issue the collecting subrogated its Id. at “whether interest.” to duty a trustee performance 658. York that Hall never as [her] maintains Van payable to the provided acting recovery that she for the make a of funds notice request company, benefit of York nor that she is entitled to reimburse would attorney attorney expenses and join if York in the ment for fеes other fees did not necessarily against party. According reasonably to in mak action the third and incurred York, recovery.” a Mut. ing she therefore should not entitled to such State Farm be Clinton, disagree. Ins. Co. v. the benefit of the doctrine. We Auto. 267 Or. (1974). 645, agree P.2d 649 with Van requirement The in common [¶ 7] notice provision Hall that the at issue does contract necessary protect eases in fund is order to clearly question the the not whether address subrogated by giving the holder of a interest permitted prorated is to retain a insured join right the holder to to “the the action and its portion recovery of the cost of from obli represented by legal be its own counsel of subrogation under gation the contract’s choosing Farm Mut. it so elects.” State ambigui that clause. We therefore сonstrue Geline, Auto. Ins. 48 179 Co. v. Wis.2d hold ty against and the (1970). present N.W.2d In case 821 the to the is entitled reimbursement that insured early York had notice that Hall had Van in expenses incurred recov for its reasonable attorney pursuing recovery an hired and was ering subrogated interеst. the insurer’s in fact alleged from tortfeasor. York attorney we that Accordingly, to her hold [¶ 9] communicated Van and express any is in Maine joining its to avoid in common fund doctrine available desire attorney brought by insured action Van conclude in ‍‌​‌​​‌​‌​​‌​​‌‌​‌‌‌​​​‌​​‌​​​​‌​​‌‌‌‌​‌​​‌​‌​‌​‌‍cases wherе an incurs Hall. We expenses judgment knowledge recovering that York’s Hall’s in actual of Van in recovery subrogated to intention from the tortfea- or settlement that benefits seek purposes to surer. The of the share sor was sufficient notice York for determinаtion attorney by the insur of the fund Particularized fees to be contributed common doctrine. trial be the discretion of the notice that Van Hall would to withhold er shall within seek Waters, Ins. required not in these cir- court. See Foremost Co. fees was Life Mich.App. 337 N.W.2d cumstances.5 ac- explicitly intervene Van Hall’s reject We also its letter refused to in York’s contention that By choosing attorney informing them to recover its Van tion. to Hall and settlement, as it had pursue subrogation interest from Van Hall's that it intended to its interest accоrding contributing every right of the independently to do to the terms it insulates from has no policy, York now claim that it Hall’s not exercise cannot fees. York did 17(a) contributing that pursuant bring responsibility the costs of right its to M.R. Civ. P. recovery. own name suit the tortfeasor its is: question I wisdom of our rewrit- ing an unambiguous contract between an in- Judgment vacated. Remanded to the Su- in a sured and an insurer situation in which perior Court proceedings for further consis- showing there was no either that Ms. Van opinion with the tent herein. Hall’s did not receive a reasonable fee for that his services or Ms. Van Hall RUDMAN, Judge, dissenting. way some less in settlement received I respectfully [¶ dissent. claim thought than she she would when she ambiguity 11] There is no the lan- made her claim for reimbursement for her guage of the policy insurance contract. The mediсal from bills and when she provides signed contingent agreement later with If policy Inc., Darbro, attorney. Theberge or whom Is it not another, made recovers that unjust deprive Mutual of York its contrac- person shall: tual reimbursement full? It based (i) proceeds hold in trust for us the of the premiums its expectation. on I would recovery; and affirm of the (ii) approval leave the form to pay- reimburse us to the extent our Superintendent

ment. Insurance and to the *5 Legislature to adopt “common fund” doc- added). (emphasis appears by trine as it to havе done its enact- An is a contract. ment of section 24-A 2910-A Title Co., Bonding Ouellette Maine & Cas. P.L.1997, Maine Revised Statutes. ch. (Me.1985) (“an A.2d pol (eff. Sept. legislative ac- contract”). is a icy Unambiguous contractual tion, effect, prospective gave insurers language interpreted according plain to its adjust premiums. chance to their commonly accepted meaning. Seashore Ctr., Performing Arts Inc. v. Town Old Beach, Orchard A.2d knowledge obligation

[¶ 13] With her repay, Ms. Van Hall claim for made medi- payments pursuant

cal hеr in- automobile She, contract, policy. by agreed ‍‌​‌​​‌​‌​​‌​​‌‌​‌‌‌​​​‌​​‌​​​​‌​​‌‌‌‌​‌​​‌​‌​‌​‌‍surance had to reimburse her to the extent insurer of its 1997 ME 229 should she recover person responsible injuries. of Maine for her STATE She engaged repre- services of an pursuit her in damages. sent She PLATT.

signed contingency agreement Thomas with the attorney whereby agreed pay she him Supreme Court of Maine. Judicial gross plus “25% the amount collected out- of-pockets prior is resolved matter Sept. Submitted on Briefs 1997. litigation.” paid the commencement of She Deсided Dec. 25% of she the amount received in settlement of her claim. She then ten- (the

dered to York Mutual amount her paid had to her less one-third of that amount). urges Ms. Van Hall the court to

adopt the “common fund” doctrine. VanMs. seeks to pay have York services rendered to enable her to obligation fulfill contractual to York. She posits “unjust.” that to do would be otherwise

Case Details

Case Name: York Ins. Group of Maine v. Van Hall
Court Name: Supreme Judicial Court of Maine
Date Published: Dec 12, 1997
Citation: 704 A.2d 366
Court Abbreviation: Me.
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