Subrogation

Consulting Engineers & Scientists, Inc. is often called to assist in matters and cases dealing with issues of subrogation.

Subrogation is where one person assumes the legal rights of another person for whom the person has paid expenses or a debt on their behalf.

Subrogation is best known as a concept of insurance law.  When an insurer is required to pay a claimant a sum of money, it is almost always allowed to sue in the name of the claimant against any person who was responsible for the loss.  This concept allows an insurance company to sue on behalf of its insures if it is required to pay the insured for a loss caused by another person.  However, it allows an insurance company to recover against its own insured when it is required to pay a third party claimant under the authority of a statute, where otherwise the insured would not be covered for the loss. In most cases, the subrogated claim is fought between two insurance companies disputing who was ultimately responsible for the loss without putting a financial burden on the insured parties.

Subrogation is generally considered in most legal systems to form part of the law of restitution by preventing the unjust enrichment, by preventing the subrogor from receiving funds from the subrogee and then still claiming the original sum of money from the tortfeasor/debtor.

Subrogation may be against a third party and also against the insured.
We are often called in to assist in matters dealing with  automobile accidents.  For example, if a drunk driver strikes a pedestrian, the pedestrian may recover their damages from the insurer even though it may have been a condition of the policy that the insured not operate a vehicle while impaired, and would not have recovered damages if he had been the only person injured.  In such a case, the insurer will be required to pay the pedestrian, but may sue its own insured to recover any money paid to the pedestrian.

Subrogation between insurers
When insured damage is clear, but fault is not, insurers are generally required to pay the proceeds to the insured party even when the right of subrogation is not clear.  For example, two adjoining businesses are destroyed by a fire that arose out of negligence, but it is not immediately clear who was to blame.  Both parties are entitled to recover from their insurers unless arson or gross negligence can be proved.  However, the insurers may still continue to litigate over which party is at fault for the fire, and the successful insurer may recover its pay out from the unsuccessful insurer.  Again, CESI may be able to help in the determination of fault.

Consutling Engineers & Scientists, Inc. can help you uncover what really happened,  Call us to discuss your subrogation issue.