Insurer or Insured as Party to Suit

Subrogation allows the insurer to stand in the shoes of the injured party and exercise the injured party’s right to sue the tortfeasor. ¬†Subrogation effectively permits the insurer to sue itself, where the insurer is also obliged to indemnify the tortfeasor.[i]

The mere payment of a loss by the insurer does not indeed afford any defense, in whole or in part, to a person, whose fault has been the cause of the loss, in a suit brought against the latter by the assured.  However, upon familiar principles, the insurer acquires by such payment a corresponding right in any damages to be recovered by the assured against the wrong-doer, or other party responsible for the loss.  Moreover, the insurer may enforce this right by action at common law in the name of the assured, or, by suit in his/her own name, when the case admits of proceeding in equity or admiralty.[ii]

[i] Craven v. Nationwide Mut. Ins. Co., 1998 Ohio App. LEXIS 897 (Ohio Ct. App., Summit County Mar. 11, 1998)

[ii] “potomac”, 105 U.S. 630, 634 (U.S. 1882)

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