Beware The Doctrine Of Superior Equities

Law360, New York (March 17, 2011, 12:33 PM EDT) -- Any insurer considering settlement of a claim with the intention of recouping its payment through a subrogation action against co-tortfeasors (third parties), should carefully consider the potential impact of the arcane “doctrine of superior equities.” The doctrine of superior equities may have the effect of preventing any recovery against co-tortfeasors who are significantly less at fault than the insured of the settling insurance company.

The doctrine of superior equities is a remnant of the “all or nothing” era of contributory negligence but it can still pack...
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