Category Archives: Subrogation

A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured


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In New Jersey Mfrs. Ins. Co. v. Lallygone LLC, No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated and tried claims related to the same underlying incident with the same defendant, Lallygone LLC (the defendant). The Appellate Division affirmed the trial court’s finding that the prior lawsuit extinguished the carrier’s claims. Continue reading

This entry was posted in New Jersey, Res Judicata, Subrogation and tagged , , , , .

Stop Suing Yourself: A Brief Discussion on the Anti-Subrogation Rule


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The newest episode of the Subro Sessions podcast is out now. This episode is entitled, “Stop Suing Yourself: A Brief Discussion on the Anti-Subrogation Rule” and is hosted by Gus Sara, Partner, and Katherine Dempsey, Associate. Gus and Katherine share their expertise on the Anti-Subrogation Rule by discussing its history, purpose and how it applies in various states across the country.

Listen to all of our episodes here. 

This entry was posted in Subrogation.

Fine Art Losses – “Canvas” the Subrogation Landscape


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If a fire or flood destroys a high-net-worth client’s fine art collection, an insurer who pays out a claim related to the loss has an incentive to pursue subrogation. This article explores some of the issues an insurer should “canvas” before pursuing subrogation for these types of claims.

Damage to fine art can occur in a number of ways. For instance, fine art may be damaged in a natural disaster – such as a flood or a wildfire. Artwork may also be accidentally damaged because of a transportation-related incident physically damaging the art. In addition, artwork may suffer fire or smoke damage from a fire within a building. Another possibility is that the artwork suffers damage because of renovations either to the insured’s home or a neighboring property. For example, a renovation contractor may damage artwork due to vibrations or leaking water. A construction worker, moreover, may turn with a tool in his hand, or trip and fall, damaging the artwork.

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This entry was posted in Anti-Subrogation Rule, Cargo - Transportation, Damages, Damages – Personal Property, Subrogation and tagged .

Investigating Residential Electrical Fires – Part 1


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Matt Ferrie, Partner, is returning to host the newest episode of Subro Sessions. This episode is the first part of a series entitled “Investigating Residential Electrical Fires.” Joining Matt is Bert Davis, Principal for Romauldi, Davidson & Associates and BDA Engineering. Matt and Bert address common misconceptions and factors to consider when investigating property damage subrogation cases in residential electrical fires.

Check out all of our Subro Sessions podcast episodes.

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Reasonable Expectations – Pennsylvania’s Case by Case Approach to the Sutton Rule


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In Mutual Benefit Ins. Co. a/s/o Michael Sacks v. Koser, No. 1340 MDA 2023, 2023 Pa. Super. LEXIS 574, 2023 PA Super 252 (Mutual Benefit), the Superior Court of Pennsylvania discussed whether a landlord’s property insurer could file a subrogation action against tenants that had negligently damaged the landlord’s property. Despite there being more than one clause in the lease holding the tenants liable for the damages, the court held that because there was a provision requiring the landlord, not the tenants, to insure the leased building, the insurer could not subrogate against the tenants.

In Pennsylvania, a tenant’s liability for damage to a leased premises in a subrogation action brought by a landlord’s insurer is determined by the reasonable expectation of the parties to the lease agreement. Under this approach, to determine if subrogation is permitted, the court considers the circumstances of the case and examines the terms of the lease agreement. Continue reading

This entry was posted in Landlord-Tenant, Pennsylvania, Subrogation, Sutton Doctrine and tagged , , , .
Gavel

The Sounds of Silence: Pennsylvania’s Sutton Rule


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In Westminster Am. Ins. Co. a/s/o Androulla M. Toffalli v. Bond, No. 538 EDA 2023, 2023 Pa. Super. LEXIS 626, 2023 PA Super 272, the Superior Court of Pennsylvania (Appellate Court) recently discussed the impact of silence on the Sutton Rule with respect to the landlord, Androulla M. Toffalli (Landlord), securing insurance. After holding that the tenant, Amy S. Bond (Bond) t/a Blondie’s Salon – who leased both commercial and residential space in the building pursuant to written leases – was not an implied “co-insured” on Landlord’s insurance policy, the Appellate Court reversed the decision of the trial court.

In this case, Bond rented the ground floor of a property located in Monroe County pursuant to a written commercial lease (Commercial Lease) and operated Blondie’s salon out of the leased location. In addition, Bond rented and lived in a second-floor apartment pursuant to a residential lease (Residential Lease). Both leases required the tenants (Tenants) to obtain insurance for personal items. The leases, however, did not require Landlord to obtain fire insurance for the property.

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This entry was posted in Anti-Subrogation Rule, Landlord-Tenant, Pennsylvania, Subrogation, Sutton Doctrine and tagged , , , , .

Workers’ Compensation Subrogation – Tales by the Water Cooler: Part II – We Got a New Claim, Now What?


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Brett Tishler, Partner, and Michael Abed, Associate, are back to host the newest episode of Subro Sessions. This is the second of a two-part #podcast series, entitled “Workers’ Compensation Subrogation – Tales by the Water Cooler: Part II– We Got a New Claim, Now What?” Brett and Michael are joined again by a surprise guest, Rob Caplan, Partner, to discuss a new workers’ compensation #subrogation case. Rob talks about a new loss and gives a critical look into the specifics into the investigation, experts, and other factors to determine if there is potential for recovery.

Check the all of our Subro Sessions podcast episodes.

This entry was posted in Subrogation and tagged , .

I Spy Claims Against Amazon


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A federal court in West Virginia recently ruled that a negligence claim could proceed against Amazon related to a spy camera used to take unsolicited photos of a teenage girl.  M.S. v. Amazon.com, Inc., No. 3:23-cv-0046, 2023 U.S. Dist. LEXIS 213236 (S.D. W. Va. Nov. 30, 2023). The negligence claim is specifically interesting for subrogation professionals as it potentially provides an additional avenue for recovery against Amazon in addition to a product liability claim.

In 2021, the plaintiff, M.S. (a minor), visited the United States as a foreign-exchange student.  During her stay, she lived with Darrel Wells, a 55-year-old man. Mr. Wells purchased a spy camera that was disguised as a bathroom towel hook on Amazon. The camera was listed for sale by an unknown third party and satisfied through the “Fulfillment by Amazon” program.  The product description showed the camera serving as a towel hook with the caption: “It won’t attract any attention[:] A very ordinary hook,” as shown in the photo below from the pleading.

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This entry was posted in Negligence, Products Liability, Subrogation, West Virginia and tagged , , , , , .

Workers’ Compensation Subrogation Tales by the Water Cooler: Part I – How to Handle a Case—AKA—What Are We Getting Ourselves Into?


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Brett Tishler, Partner, and Michael Abed, Associate, are back to host the newest episode of Subro Sessions. This is the first of a two-part podcast series, entitled “Workers’ Compensation Subrogation Tales by the Water Cooler: Part I – How to Handle a Case—AKA—What Are We Getting Ourselves Into?” Brett and Michael are joined by a special guest, Rob Caplan, Partner, to trade stories and discuss the many moving parts in workers’ compensation #subrogation—and the many moving parts to consider when dealing with a new claim in order to obtain a recovery.

Mark your calendar for Part 2, entitled: “Tales by the Water Cooler:  We Got a New Claim, Now What?” launching on Tuesday, December 19th.

Check the all of our Subro Sessions podcast episodes.

This entry was posted in Podcast, Subrogation, Workers' Compensation and tagged , , .

Beware: A Security Company’s Contract May Eliminate Your Causes of Action


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In Jewels by Iroff, Inc. v. Securitas Tech. Corp., No. 1:23-CV-556-TWT, 2023 U.S. Dist. LEXIS 172391, a Georgia federal court addressed a suit against a security/alarm company arising from a break-in at a jewelry store where the thieves stole over $1 million in jewelry. The court addressed numerous provisions in the alarm company’s contract – such as a waiver of subrogation, exculpatory and limitation of liability provision – and concluded that the provisions were enforceable. Thus, the court dismissed the plaintiff’s complaint (although it gave the plaintiff the opportunity to try and amend its complaint to state a cause of action).

In February 2022, a break-in occurred in Alpharetta, Georgia at Jewels by Iroff, Inc. (Iroff). Iroff’s insurer, Jewelry Mutual Insurance Company (Insurer), reimbursed Iroff for more than $1.2 million in losses following the incident. Insurer then filed a subrogation action against Iroff’s alarm security contractor, Securitas Tech. Corp. (Securitas), alleging gross negligence, breach of contract and fraudulent misrepresentation.

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This entry was posted in Contracts, Georgia, Limitation of Liability, Subrogation, Waiver of Subrogation and tagged , , , , , , .