Lincoln National Health & Casualty v. Mitsubishi Motor Sales
Lincoln National Health & Casualty v. Mitsubishi Motor Sales
Opinion of the Court
Lincoln National Health & Casualty Company (Lincoln National) appeals the final summary judgment entered by the trial court in favor of appellees. The trial court determined that Lincoln National has no legal right to pursue a claim for equitable subrogation against the appel-lees. We reverse based upon application of the law of the case doctrine.
The facts underlying the instant litigation are succinctly set forth in our prior opinion in Lincoln Nat’l. Health & Cas. Ins. Co. v. Mitsubishi Motor Sales of Am., Inc., 666 So.2d 159 (Fla. 5th DCA), rev. denied, 676 So.2d 1369 (Fla. 1996)(Lincoln
The trial court initially entered summary judgment against Lincoln National, concluding that Lincoln National’s equitable subrogation claim was controlled by the laws of Connecticut, the state which governed the insurance contract between Lincoln National and Skowronek, and that under Connecticut law Lincoln National possessed no legally cognizable subrogation right. The trial court also concluded that the general release signed by Skowro-nek, albeit without Lincoln National’s consent, barred any subrogation claim.
In Lincoln National I we reversed the summary judgment, concluding that Lincoln National’s claim for equitable sub-rogation was controlled by Florida tort law, not Connecticut contract law.
Upon remand Skowronek, who had stepped into the shoes of the settling tort-feasors by virtue of the terms of the parties’ settlement agreement, intervened in this action. The settling tortfeasors then collectively sought summary judgment relief. In spite of the clear rulings set forth in Lincoln National I, they essentially re-argued the same issues as those argued at the initial summary judgment hearing. They claimed that Connecticut law was applicable when considering Lincoln National’s equitable subrogation claim and
This court already established in Lincoln National I that the settling tort-feasors have no basis to assert defenses to the instant subrogation claim based upon Lincoln National’s insurance contract and that, with knowledge of Lincoln National’s subrogation rights, they could not rely on a release signed by Skowronek to avoid a claim for equitable subrogation. What we said in Lincoln National I bears repeating here:
The rule that a settlement executed by the insured cannot act as a bar to an action for subrogation by the insurer against a third-party tortfeasor if, prior to the settlement, the tortfeasor learns of the insurer’s perfected subrogation rights, has been adopted by a majority of American courts and seems more sensible than a rule that makes the health insurer’s right to subrogation wholly dependent on actions taken by the insured for its own benefit. Our supreme court in Matthews [Blue Cross and Blue Shield of Florida, Inc. v. Matthews, 498 So.2d 421 (Fla. 1986) ] has chosen to recognize the right of a health insurer to recover health care payments from the tortfeasor even though the insured must still look to the tortfeasor to recover other damages. This places the insurer and the insured in competition for available compensation. A tortfeasor cannot expect to rely on a release from the victim if he knows that equity has transferred a portion of the victim’s claim of recovery into the hands of a third party who has paid a part of what the tortfea-sor by rights should pay.
Lincoln National I, 666 So.2d at 163. The foregoing quotation sets forth the established law of this case and reflects the public policy of Florida in regard to equitable subrogation.
While we are tempted to reverse and remand this matter to the trial court with instructions to enter .final judgment in favor of Lincoln National in an effort to avoid the entry of an erroneous third summary judgment, and a Lincoln National III here, we decline to do so because Lincoln National’s motion for summary judgment was not heard below and thus is not currently before us for review. The sua sponte entry of a summary judgment for the non-moving party, although not disallowed, is not a generally accepted practice. The better practice is to require the trial court to rule upon Lincoln National’s pending summary judgment motion. See Wizikowski v. Hillsborough County, 651 So.2d 1223 (Fla. 2d DCA 1995); Univ. of Miami v. Sosa, 629 So.2d 172 (Fla. 3d DCA 1993); First Union Nat’l. Bank of Florida v. Maurer, 597 So.2d 429 (Fla. 2d DCA 1992). Accordingly, we reverse the summary judgment entered against Lincoln National and remand this matter to the trial court for further proceedings consistent with this opinion.
REVERSED AND REMANDED.
. Points of law adjudicated in a prior appeal become the ‘law of the case,’ and are no longer open for discussion or consideration in subsequent proceedings. Gabor v. Gabor & Co., Inc., 599 So.2d 737, 738 (Fla. 3d DCA 1992).
. The right to pursue a claim for equitable subrogation "arises when the person discharging the obligation is under a legal duty to do so or when the person discharges the obligation to protect an interest in, or a right to, the property.” National Union Fire Ins. Co. of Pittsburgh, Pa. v. KPMG Peat Marwick, 742 So.2d 328, 332 (Fla. 3d DCA 1999), app’d, 765 So.2d 36 (Fla. 2000). The policy behind the doctrine is to prevent unjust enrichment by assuring that the person who in equity and good conscience is responsible for the debt is ultimately answerable for its discharge. Kala Inv., Inc. v. Sklar, 538 So.2d 909 (Fla. 3d DCA 1989). Florida courts are “committed to a liberal application of the rule of equitable subrogation.” Dantzler Lumber & Export Co. v. Columbia Casualty Co., 115 Fla. 541, 156 So. 116, 120 (1934).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.