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SUBROGATION

subrogation (s<>b-r<>-gay-sh<>n), n.1. The substitution of one-party for another whose debt the party pays, entitling the paying party to rights, remedies, or securities that would otherwise belong to the debtor. • For example, a surety who has paid a debt is, by subrogation, entitled to any security for the debt held by the creditor and the benefit of any judgment the creditor has against the debtor, and may proceed against the debtor as the creditor would. [Cases: Subrogation 1, 33. C.J.S. Subrogation §§ 2–15, 19, 91.] 2. The equitable remedy by which such a substitution takes place. 3. The principle under which an insurer that has paid a loss under an insurance policy is entitled to all the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy.

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2K views2 pages

SUBROGATION

subrogation (s<>b-r<>-gay-sh<>n), n.1. The substitution of one-party for another whose debt the party pays, entitling the paying party to rights, remedies, or securities that would otherwise belong to the debtor. • For example, a surety who has paid a debt is, by subrogation, entitled to any security for the debt held by the creditor and the benefit of any judgment the creditor has against the debtor, and may proceed against the debtor as the creditor would. [Cases: Subrogation 1, 33. C.J.S. Subrogation §§ 2–15, 19, 91.] 2. The equitable remedy by which such a substitution takes place. 3. The principle under which an insurer that has paid a loss under an insurance policy is entitled to all the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy.

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SUBREPTIO

subreptio (s<<schwa>>b-rep-shee-oh), n. [Latin “surreptitious removal”] Roman law. 1.


Theft. 2. The obtaining of a grant from the emperor under false pretenses. — Also termed (in
French law) subreption. Pl. subreptiones (s<< schwa>>b-rep-shee-oh-neez).

SUBREPTIONE VEL OBREPTIONE


subreptione vel obreptione (s<<schwa>>b-rep-shee-oh-nee vel ob-rep-shee-oh-nee), adv.
[Latin] Hist. By deceit or surprise.

SUBROGATE
subrogate (s<<schwa>>b-r<<schwa>>-gayt), vb. To substitute (a person) for another
regarding a legal right or claim. [Cases: Subrogation 1.C.J.S. Subrogation §§ 2–15, 19, 91.]

SUBROGATION
subrogation (s<<schwa>>b-r<<schwa>>-gay-sh<<schwa>>n), n.1. The substitution of one-party for another
whose debt the party pays, entitling the paying party to rights, remedies, or securities that would otherwise
belong to the debtor. • For example, a surety who has paid a debt is, by subrogation, entitled to any security for
the debt held by the creditor and the benefit of any judgment the creditor has against the debtor, and may
proceed against the debtor as the creditor would. [Cases: Subrogation 1, 33. C.J.S. Subrogation §§ 2–15, 19,
91.] 2. The equitable remedy by which such a substitution takes place. 3. The principle under which an
insurer that has paid a loss under an insurance policy is entitled to all the rights and remedies belonging to the
insured against a third party with respect to any loss covered by the policy.

See EQUITY OF SUBROGATION; ANTISUBROGATION RULE. [Cases: Insurance 3509, 3513.]

“Subrogation is equitable assignment. The right comes into existence when the surety
becomes obligated, and this is important as affecting priorities; but such right of subrogation does not
become a cause of action until the debt is fully paid. Subrogation entitles the surety to use any remedy
against the principal which the creditor could have used, and in general to enjoy the benefit of any advantage
that the creditor had, such as a mortgage, lien, power to confess judgment, to follow trust funds, to proceed
against a third person who has promised either the principal or the creditor to pay the debt.” Laurence P.
Simpson, Handbook on the Law of Suretyship 205 (1950).

“Subrogation simply means substitution of one person for another; that is, one person is allowed to stand in the
shoes of another and assert that person's rights against the defendant.
Factually, the case arises because, for some justifiable reason, the subrogation plaintiff has paid a debt owed by
the defendant.” Dan B. Dobbs, Law of Remedies § 4.3, at 404 (2d ed. 1993).
conventional [Link] that arises by contract or by an express act of the parties. [Cases:
Subrogation 27. C.J.S. Subrogation §§ 4–5, 22.]

legal subrogation. Subrogation that arises by operation of law or by implication in equity to


prevent fraud or injustice. • Legal subrogation usu. arises when (1) the paying party has a liability,
claim, or fiduciary relationship with the debtor, (2) the party pays to fulfill a legal duty or because
of public policy, (3) the paying party is a secondary debtor, (4) the paying party is a surety, or (5)
the party pays to protect its own rights or property. — Also termed equitable subrogation. [Cases:
Subrogation 1–25. C.J.S. Subrogation §§ 2–16, 18–19, 23–63, 68–76, 83–86, 88–91.]

SUBROGATION CLAUSE
subrogation clause. Oil & gas. A provision in an oil-and-gas lease permitting the lessee to pay
taxes, mortgages, or other encumbrances on the leased property and to recover those payments out
of future proceeds under the lease.
SUBROGATIVE
subrogative (s<<schwa>>b-r<<schwa>>-gay-tiv), adj. Of or relating to subrogation
<subrogative rights>. — Also termed subrogatory; subrogational.

SUBROGEE
subrogee (s<<schwa>>b-r<<schwa>>-jee). One who is substituted for another in having aright, duty, or claim.
• An insurance company frequently becomes a subrogee after paying a policy claim, as a result of which it is
then in a position to sue a tortfeasor who injured the insured or otherwise caused harm.

SUBROGATIVE
subrogative (s<<schwa>>b-r<<schwa>>-gay-tiv), adj. Of or relating to subrogation <subrogative
rights>. — Also termed subrogatory; subrogational.

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