Opinion ID: 2218842
Heading Depth: 1
Heading Rank: 11

Heading: dss' subrogation right

Text: DSS fares no better with its claim based on a subrogation right acquired under § 68-716 rather than a statutory assignment effected pursuant to § 68-1026. Subrogation is substitution of one person who is not a volunteer, a subrogee, for another, a subrogor, as the result of the subrogee's payment of a debt owed to the subrogor so that the subrogee succeeds to the subrogor's right to recover the amount paid by the subrogee. See, Chadron Energy Corp. v. First Nat. Bank, 236 Neb. 173, 459 N.W.2d 718 (1990); State Auto. & Cas. Underwriters v. Farmers Ins. Exchange, 204 Neb. 414, 282 N.W.2d 601 (1979); Garrity v. Rural Mut. Ins. Co., 77 Wis.2d 537, 253 N.W.2d 512 (1977). ``Subrogation is the right of one, who has paid an obligation which another should have paid, to be indemnified by the other.'' Chadron Energy Corp. v. First Nat. Bank, 236 Neb. at 194, 459 N.W.2d at 734. To be entitled to subrogation, one must pay a debt for which another is liable. See, State Auto. & Cas. Underwriters v. Farmers Ins. Exchange, supra ; Luikart v. Buck, 131 Neb. 866, 270 N.W. 495 (1936); Garrity v. Rural Mut. Ins. Co., supra ; In re Anchor State Bank, 234 Wis. 261, 291 N.W. 329 (1940); Kansas City Title & Trust Co. v. Fourth Nat'l Bank, 135 Kan. 414, 10 P.2d 896 (1932). Thus, DSS did not acquire a subrogation right until August 17, 1987, when DSS began paying Perry's medical expenses. Since DSS began payment on behalf of Perry well after LGH's lien attached, DSS' subrogation right is inferior to LGH's lien.