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FOLSTAD v. EDER

No. C6-90-585.

467 N.W.2d 608 (1991)

Donna Jean FOLSTAD, n/k/a Donna Jean Fairbanks, Respondent, v. Nancy Irene EDER, et al., Petitioners, Appellants.

Supreme Court of Minnesota.

April 5, 1991.

Attorney(s) appearing for the Case

Thomas A. Harder, Jardine, Logan & O'Brien, St. Paul, for appellants.

Douglas E. Schmidt, Sieben, Grose, Von Holtum, McCoy & Carey, Ltd., Minneapolis, for respondent.

Heard, considered, and decided by the court en banc.

SIMONETT, Justice.

If, prior to trial of the employee's tort action, the employer-insurer settles its subrogation claim with the defendant tortfeasor, does either the allocation formula of Minn.Stat. § 176.061, subd. 6 (1990) or the collateral source deduction of Minn. Stat. § 548.36 (1990) apply? The trial court thought the collateral source deduction applied and the court of appeals thought the allocation formula governed. We disagree with both and reverse...

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