Opinion ID: 894884
Heading Depth: 2
Heading Rank: 2

Heading: Subrogation Under Cantu's Insurance Contract With Fortis

Text: We turn now to the specific language of the policy in issue, which defines the parties' rights and obligations. It contains a section called Recovery, which includes a Subrogation Right provision and a separate (and broader) Right of Reimbursement provision. The former establishes a right of subrogation: Upon payment of benefits, We [Fortis] will be subrogated to all rights of recovery a Covered Person [Cantu] may have against any person or organization. [54] The provision continues: Such right extends to the proceeds of any settlement or judgment; but is limited to the amount of benefits We have paid. [55] Fortis thus retained an unfettered right to recover the proceeds from the settlement of the underlying suit, the only limitation being the amount of recovery what Fortis had paid under the contract. Nowhere does this provision suggest that Cantu must first be made whole for Fortis to recover. This provision does not use the modifier first money, but its meaning is not imprecise or ambiguous. The contract's specific language controls Fortis's right to subrogation, and the equitable defense of the made whole doctrine must give way. Accordingly, we hold that Fortis is contractually entitled to recover from the $1.445 million settlement the total amount of benefits it paid to Cantu. [56]