March 24, 2015

General Release Does Not Extinguish Subro Rights

Insureds' jewelry burglarized, September 2008. Insurer, Unitrin, promptly pays a portion of claim. October 2008, Unitrin sends a letter to building owner and management company notifying them of a lien interest. Insureds then asserted a claim against the building for  balance not covered by Unitrin. Building's insurer, OneBeacon, subsequently paid the balance in exchange for a  General Release, dated July 1, 2009. Unitrin subrogates against Building; building produces release as a bar. Court rules: A general release can prejudice the rights of an insurance subrogee by extinguishing the right of subrogration; but, a party cannot extinguish another's right to subrogation where that party has knowledge about the other's right to subrogation.

Unitrin Auto & Home Ins. Co. v Rudin Mgt. Co., Inc.

Connect with us

Visit our FacebookVisit our InstagramVisit our TwitterVisit our LinkedInVisit our YouTube channel
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. 
The viewing of this website does not constitute an attorney-client relationship. Attorney Advertising: Prior results DO NOT guarantee similar results.

Copyright © 2023 Pardalis & Nohavicka LLP. All Rights Reserved. Website Designed & Developed by Ruxbo
magnifier linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram