The state as a self-insured entity is not immune from subrogation claims under Delaware's Financial Responsibility Act.

A no-fault insurer, GEICO, as subrogee for its insured, filed an action against the defendants, the state and its employee, to recover first party benefits paid as a result of a motor vehicle accident that occurred between the employee and the insured. The employee was driving a state-owned, state-insured vehicle at the time. The state filed a motion for summary judgment arguing that it was an except entity from subrogation under the Financial Responsibility Act. The court disagreed, holding that the state was not entitled to sovereign immunity as subrogation claims are permitted against an uninsured or self-insured entity. Therefore, as a self-insured entity for subrogation purposes, the state was liable under Del. Code Ann. tit. 21, § 2118(g). As a result, the court denied the defendants' motion for summary judgment.

Case Law Alert - 4th Qtr 2011