Opinion ID: 9029
Heading Depth: 4
Heading Rank: 3

Heading: Condition 15 and Waiver of Subrogation

Text: 51 Condition 15 waived Verex's rights to pursue Palma for any loss paid to the insured pursuant to this policy. The amount paid to City Federal was $51,122.47. It is clear that Palma was entitled to enforce the waiver of subrogation rights present in Condition 15, which entitled her to a credit of $51,122.47 on the amount assigned by City Federal to Verex. 11 The trial court should have properly credited the deficiency balance owed by Palma with the amount paid by Verex to City Federal. If it had done so it would have found that the deficiency assignable to Verex was $60,326.69. 12 52 The errors commited by the trial court in determining the amount of the deficiency balance caused it to further err in finding of fact number eight. In finding of fact number eight the trial court stated that Verex is the assignee of the deficiency claimed, and has the right to recover it under the lawful assignment agreement. This finding is erroneous because the assignment agreement violated the express terms of the contract, thereby violating Palma's rights as a third-party beneficiary. As a result of the errors present in the trial court's finding of facts, we must reverse the judgment of the trial court.