Ex parte State Farm Mutual Automobile Insurance Company.

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State Farm Mutual Automobile Insurance Company petitioned the Alabama Supreme Court for certiorari review of the Court of Civil Appeals' decision affirming the trial court's judgment ordering State Farm to pay an attorney fee based on a common-fund theory for the recovery of the moneys advanced by State Farm to James Ross Pritchard, Jr., pursuant to "Lambert v. State Farm Mutual Automobile Insurance Co.," (576 So. 2d 160 (Ala. 1991)). Pritchard sued Broderick McCants, State Farm (Pritchard's uninsured/underinsured-motorist ("UIM") insurer), and others seeking damages for injuries Pritchard suffered in an automobile accident with a vehicle being operated by McCants. Applying the Court's determination that a UIM insurer does not have a subrogation interest in a "Lambert" advance to the facts of this case, the Court held that State Farm did not have a subrogation interest in the $50,000 it advanced to Pritchard pursuant to "Lambert" and, consequently, that Pritchard's recovery from the tortfeasor of the "Lambert" advance did not create a common fund from which State Farm was required to pay its share of Pritchard's attorney fee. View "Ex parte State Farm Mutual Automobile Insurance Company." on Justia Law