Fortman

This equitable subrogation action arose from an underlying personal injury lawsuit brought by Nichole Fortman (Fortman) against Austin Hardware and Supply, Inc. (Austin), the component part manufacturer of a jeep door handle and lock assembly, and others. Safeco Insurance Company of America (Safeco), Austin’s primary insurer, repeatedly refused to settle before trial within its $300,000 primary policy limits. When Austin settled during trial, Safeco contributed its policy limits. U.S. Fire Insurance Company and Industrial Indemnity Company (U.S. Fire), Austin’s excess insurer, contributed $1,125,000 of its $2 million excess policy limits and assigned to Fortman its equitable subrogation claim against Safeco. The jury found Austin zero percent responsible for Fortman’s injuries.

Fortman then filed this action. The trial court granted summary judgment for Safeco and dismissed the case. Fortman appealed. We must decide whether the absence of a judgment in excess of Austin’s primary policy limits, and the underlying jury determination absolving Austin of responsibility for Fortman’s injuries, preclude Fortman’s equitable subrogation action. We find they do not and reverse…