The Connecticut Supreme Court has ruled that a landlord’s insurer could use the doctrine of equitable subrogation to sue tenants for damage they caused to the rented property where the tenants had agreed in their lease that they would be responsible for damage and that they would obtain liability and property damage insurance—even in the absence of a specific agreement authorizing subrogation.

The Case Andrew Muldowney and Kalynn Tupa rented a single family home in Greenwich, Connecticut, from John H. Mihalec. During the term of the lease, Mr. Muldowney and Ms. Tupa left the leased property for an extended winter vacation lasting about two weeks. Mr. Muldowney and Ms. Tupa were responsible for ordering and paying for fuel for the home’s oil fueled heating system but had not ensured that the heating system had enough oil to operate for the duration of their absence.