People v. Short

In People v. Short (2008) 160 Cal.App.4th 899, the primary case authority upon which Vasquez relied in the trial court, the defendant had seriously injured the victim while driving his employer's vehicle within the course and scope of his employment but under the influence of alcohol. The defendant, sentenced to four years four months in state prison, was ordered to pay victim restitution of $ 450,042.65 for medical costs the victim had incurred. The victim and his wife later filed a civil action against the defendant and the defendant's employer, seeking damages for medical bills, pain and suffering, lost wages, loss of consortium and property loss. To settle the lawsuit the employer's insurer paid its policy limit of $ 3 million and, in return, received a waiver of claims by the victim and his wife against both the defendant and the employer. The defendant then moved in his criminal case to reduce the victim restitution order by the amount of the settlement paid to the victim. The trial court denied the motion because the defendant was not a named insured under the policy and had not paid the insurance premiums. The Court of Appeal reversed, holding the defendant was entitled to an offset for that portion of the civil settlement properly allocated to the victim's medical costs included in the restitution order: "The insurance company was contractually obligated to compensate the victim on behalf of defendant as well as on behalf of his employer, even though defendant did not procure the policy or make the premium payments. This is exactly what the insurance company did by paying $ 3 million to the victim in exchange for his release of both defendant and his employer from further liability arising out of the collision. Thus, the settlement payment is deemed to be restitution to the victim made directly from defendant within the meaning of section 1202.4." (Id. at p. 905.) The appellate court remanded the matter for the trial court to determine what portion of the $ 3 million settlement must be allocated to reduce defendant's restitution obligation. (Ibid.)