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HART v. STATE FARM MUT. AUTO. INS.

No. 11608.

248 N.W.2d 881 (1976)

Everett E. HART and Margaret L. Hart, Plaintiffs and Respondents, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant and Appellant.

Supreme Court of South Dakota.

Rehearing Denied February 1, 1977.

Attorney(s) appearing for the Case

H. I. King, Jr., of King & King, Aberdeen, for plaintiffs and respondents.

James A. Wyly, of Richardson, Groseclose, Kornmann & Wyly, Aberdeen, for defendant and appellant.

ZASTROW, Justice.

This action was brought by the plaintiffs to recover medical expenses under an automobile insurance policy issued by the defendant, State Farm Mutual Automobile Insurance Company (State Farm). State Farm denied coverage under the policy because the plaintiffs had negotiated a settlement and signed a release and indemnity agreement for the third-party wrongdoer. The release was in violation of the subrogation clause of the insurance contract. The...

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