Opinion ID: 1757463
Heading Depth: 3
Heading Rank: 1

Heading: Effect of General Tort Settlement and Release on Contractual BRB.

Text: Generally, a tort settlement and release does not affect the payment of BRB. A tort settlement and release and contractual BRB are distinct methods of recovery. See Ammons v. Winklepleck, 570 S.W.2d 287, 289 (Ky.App.1978) ([Bodily injury] liability coverage and the BRB coverage do not overlap and do not provide duplicate benefits for the same elements of loss.) (internal quotation marks omitted). Dealing with the two methods of recovery is like dealing with apples and oranges. Holzhauser v. West American Ins. Co., 772 S.W.2d 650, 651 (Ky.App.1989). When the insured files suit against the tortfeasor, the trial court is required by law to permit the no-fault insurer to piggyback its claim against the tortfeasor's insurer, and, as the real party in interest, it is the only party who could give the tortfeasor and his insurer a release for elements of damages covered by basic reparation benefits. State Farm Mut. Auto. Ins. Co. v. Allstate Ins. Co., 684 S.W.2d 283, 285 (Ky.App. 1985) ( quoting Grange Mut. Cas. Co. v. McDavid, 664 S.W.2d 931 (Ky.1984)). Therefore, [a] release as to the tort-feasor has no effect on the contractual [BRB] claim. Holzhauser, 772 S.W.2d at 651. Here, the claims adjuster for Bee Line described the settlement offer as an offer to resolve Coleman's injury claim. Because the Bee Line Release only provides for indemnification from any claims ... against the proceeds of this settlement[,] which was a personal injury tort settlement, it was merely a general tort release.