Golden Rule Ins. Co. v. Widoff

Gerson Widoff (defendant) was the son of Rosemarie Widoff and the husband of Betty Widoff. Gerson, Rosemarie, Betty, and Valanna Widoff were traveling in a car that was struck by a car driven by Gary Sokoloski. Sokoloski and Rosemarie died in the accident. Gerson and Betty sustained serious personal injuries. Golden Rule Insurance Company (Golden) (plaintiff) insured Gerson and Betty. Pursuant to Gerson and Betty’s insurance policy, Golden paid $184,216 toward Gerson’s medical expenses and $48,012 toward Betty’s. Later, the injured parties entered into a settlement agreement with State Farm Insurance Company, the insurer of Sokoloski’s vehicle. Under the agreement, State Farm Insurance paid $1,000 each to Gerson, Betty, and Valanna, and $296,000 to Rosemarie’s estate. Gerson was the personal representative of Rosemarie’s estate. The beneficiaries of Rosemarie’s will were Gerson, Gerson’s brother, and a trust. Upon learning of the settlement agreement, Golden filed suit in trial court against Gerson, as the personal representative of Rosemarie’s estate, seeking to prohibit Gerson from distributing the funds that Rosemarie’s estate had received in the settlement. Golden alleged that (1) the insurance policy for Gerson and Betty provided that, in the case of a settlement with a tortfeasor, Gerson and Betty would have to reimburse Golden the lesser of either the amount paid by Golden or 50 percent of the settlement; (2) Gerson and Betty deliberately structured the settlement agreement to avoid reimbursing Golden; and (3) because Gerson was one of three beneficiaries to Rosemarie’s will, Gerson and Betty would receive the benefit of the $296,000 paid to Rosemarie’s estate and would avoid having to reimburse Golden. The trial court dismissed the action due to lack of jurisdiction. Golden appealed.