The Colorado Supreme Court issued its opinion in Allstate Insurance Co. v. Medical Lien Management, Inc. on Tuesday, May 26, 2015.
Purported Assignment of Future Contract Rights—Purported Assignment of Future Personal Injury Proceeds.
Allstate Insurance Co. (Allstate) petitioned for review of the court of appeals’ judgment reversing the dismissal of a breach of assignment claim brought by Medical Lien Management, Inc. (MLM). Notwithstanding allegations of the complaint to the contrary, the district court effectively construed MLM’s Lien and Security Agreement with a motor vehicle accident victim, upon which the complaint was premised, as failing to assign the victim’s right to the proceeds of his personal injury lawsuit against Allstate’s insured. By contrast, the court of appeals found a valid assignment to MLM of all rights to the future proceeds from the victim’s personal injury claim in an amount equal to the costs of medical services paid for by MLM, as well as a sufficient allegation in the complaint of an enforceable obligation by Allstate to pay the assigned sums to MLM. The Supreme Court reversed, holding that the court of appeals erred in finding the purported assignment in this case—an as-yet indeterminable portion of proceeds of an unresolved personal injury claim—to be effective against Allstate.