Consequences Of A Separate Subrogated Carrier Suit

Law360, New York (July 6, 2011, 3:59 PM EDT) -- Two recent decisions under California law involving subrogation recoveries explain the consequences to all involved parties where an insurer pursues a subrogation recovery without the insured. Recently, the California Court of Appeals confirmed that the proceeds of the plaintiffs’ property insurance is not a collateral source where the insurer has asserted its subrogation rights.

The court in Garbell v. Conejo Hardwoods Inc. 193 Cal. App. 4th 1563, 122 Cal. Rptr. 3d. 856 (2nd App. Dist. April 5, 2011) held that where the subrogated insurer separately sues,...
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