"The Court reasoned that subrogation, by definition, requires that the subrogee obtain the right to proceed against a third party and that the non-duplication provision provided no such right. Accordingly, the reimbursement provision was not prohibited by statute," Judge Robert J. Humphreys wrote for the majority. "For purposes of this case, Reynolds Metals Co. contradicts Kirkpatrick’s argument that USAA retains some subrogation right against Brown. Reynolds Metals Co. directly states that an insurer’s right to reimbursement from its insured is not equivalent to their right of subrogation against the defendant."
July 11, 2023 at 12:45 PM
8 minute read
The Virginia Court of Appeals recently determined that an insurer’s waiver of its right to subrogation did not exude the underlying tort liability of the liable party.
In considering whether an insurer’s waiver of its right to subrogation against a tortfeasor precludes the insured-plaintiff from recovering on a judgment against the tortfeasor, the 2-1 majority determined that the mere waiver of the insurer’s right to subrogation didn’t discharge the underlying tort liability.
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