Opinion ID: 873585
Heading Depth: 2
Heading Rank: 1

Heading: The Subrogation Claim

Text: A subrogation claim arises when an insurer compensates its insured for an injury caused by a third party and obtains the “right to proceed against [the] third party responsible for [the] loss which the insurer has compensated pursuant to its contractual obligation under [the] policy.”7 An insurer with a subrogation claim “may pursue a direct action against the tortfeasor, discount and settle its claim, or determine that the claim should not be pursued.”8 Unless the insurer objects, the insured may include the subrogation claim in the insured’s claim against a third-party tortfeasor.9 Here, Campbell’s insurer indicated that it wanted Campbell to pursue recovery of its subrogation claim. Consequently, the subrogation claim was part of the damages Campbell sought from Dearlove at the start of this litigation.