State Farm wins as Montana court clarifies subrogation rights for insurers

On appeal, the Montana Supreme Court upheld the lower court’s decision. The court clarified that Montana’s made whole doctrine requires insurers to wait until insureds are fully compensated – including attorney fees – before seeking subrogation. However, the court found that the Johnsons’ remaining losses and attorney fees related to damages not covered by their State Farm policy. As a result, the doctrine did not apply, and State Farm’s subrogation was permitted.

Read More>>