Brit Inns Ltd v. BDW Trading Ltd is an illustrative example of where litigation (and in this case, a subrogated claim) can go wrong. Indeed, the judge said “[t]his litigation has gone wrong for everybody.” It does, though, have important aspects that can improve Claimants and Defendants approaches to subrogation claims. Facts A contractor caused flooding...

As the State of Texas continues to enjoy strong population growth, condominiums will continue to proliferate particularly in Texas’ largest cities. For subrogation professionals who occasionally see claims associated with condominium associations, it is helpful to have an understanding of the Texas Uniform Condominium Act (“UCA”) and how it may affect potential subrogation rights. The...

In most jurisdictions today, to recover under a strict products liability theory, the Plaintiff must prove that a defect in the subject product was a producing cause of the Plaintiff’s damages. More importantly, in order to recover under a strict products liability theory, the Plaintiff must show that the defective product caused physical harm to...

When faced with a subrogation loss involving a new or fairly new house, and a potential construction defect that caused the loss, one of the first things to look for is how warranties can help or hurt your case. Did the builder give an express warranty? For how long? Were any warranties disclaimed? Do implied...

We have all experienced the frustration of having negotiated an acceptable settlement recovery after years of loss investigation and discovery, only to have the settling defendant drag its heels in terms of proffering a release and/or tendering the settlement proceeds. That frustration will be felt less frequently in Illinois due to new legislation. Effective at...

By now most subrogation professionals understand the importance of keeping current with the frequent Consumer Product Safety Commission recall notices.  For this blog post we note the following recent notable recalls for the subrogation professional: Bosch Security Systems Recalls Fire Control Panels Due to Fire Alarm Failure  A recall was issued by the United States...

In August 2013, we reported that Christmas had come early for the California subrogation community due to a recent decision from the Court of Appeals which found that the “Right to Repair Act” (SB 800) did not apply to cases in which a property owner had suffered actual damages. Prior to the Liberty Mutual Insurance Company v....

The recoverability of loss of use damages for recreational water craft has been vexing Federal courts in Admiralty cases for over 100 years. In 1897, the Supreme Court of The United States held that loss of use damages for a vessel “designed for pleasure only and which had never been put to any other use”...

Since the mid-1980’s, virtually all Commercial General Liability (CGL) policies have contained some form of a total (or absolute) pollution exclusion. The 1988 ISO total pollution exclusion endorsement provides that there is no liability coverage for “property damage…which would not have occurred in whole or in part but for the…discharge, dispersal, seepage, migration, release or...

Many states require that subrogation carriers demand the insured’s deductible as part of a pre-suit subrogation demand. For example, in California the Insurance Code requires that subrogating carriers include the insured’s deductible in any demand to a third party tortfeasor, and share subrogation recoveries on a proportionate basis with the insured, unless the insured already...