Acquisition Costs on UM Subrogation

Is a subrogated UM carrier responsible for acquisition fees (attorney fees and expenses) of the plaintiff’s lawyer in recovering the money the UM carrier is subrogated to?

Answer: Yes. See: Phillips v. State Farm Mut. Auto. Ins. Co., 73 F.3d 1535 (10th Cir.): UM carrier required to pay part of insured’s attorney fees and expenses for recovering subrogation.

There is also a state court case applicable by analogy. Carter v. Wooley, 1974 OK 45, 521 P.2d 793 held (before the work comp statute required the employer to pay fees out of subrogation) that the work comp carrier had to pay its proportionate share of recovery costs to recover subrogation.