When Excess Carriers Walk A Mile In An Insured's Shoes

Law360, New York (June 22, 2012, 1:38 PM EDT) -- Where an insured has assigned away its rights to recover available insurance, the insured’s “empty shoes” do not necessarily prevent an excess carrier that pays defense costs rightfully owed by primary carriers from pursuing the primary carriers based a contractual subrogation theory.

An excess carrier proceeding on this basis typically “stands in the shoes of the insured,” obtaining only those rights held by the insured. Nonetheless, the U.S. Fifth Circuit Court of Appeals found in May 2012 that where an excess carrier picks up the bill...
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