Opinion ID: 1936878
Heading Depth: 1
Heading Rank: 4

Heading: Application of Subrogation Law to the Case.

Text: The undisputed facts in the case reveal Carruthers had knowledge of Allied's subrogation interest at the time of the settlement. This was established by two circumstances. First, Allied sought to intervene in the action between Carruthers and the Heikens. The petition for intervention alleged the existence of the subrogation right. Second, Allied monitored the case between Carruthers and the Heikens, and actually participated in the settlement negotiations in an effort to protect its subrogation claim. Thus, in the context of this case, it is undisputed that Carruthers knew of Allied's subrogation claim at the time he obtained a release from the Heikens. Therefore, Carruthers remains liable on Allied's subrogation claim. Consequently, Allied is unable to establish in this action that the settlement and release impaired its subrogation claim against Carruthers. As a matter of law, Allied cannot recover from the Heikens for breach of the subrogation terms of the insurance policy or the written assignment.