Subrogated

Subrogated is a legal term describing the status of a party that has been substituted for another in pursuing a claim or remedy against a third party. The substitution transfers the right to seek recovery from the original claimant to the substitute, allowing the substitute to step into the claimant’s shoes.

In insurance, subrogation occurs when an insurer pays a claim to the insured for a loss and, by contract or law, acquires the insured’s rights against the person or entity at fault. The insurer may then pursue recovery of the payment from that third party. The insured typically must cooperate and not compromise the claim, and the insured cannot recover twice for the same loss because the insurer’s subrogated recovery replaces the insured’s claim.

Subrogation also arises in other contexts. In suretyship, a surety who pays a debt gains the principal debtor’s rights to collect from the debtor. In contract and real property, subrogation or the right to substitute can be created by agreement or by statute to facilitate settlement or to secure obligations.

Process and limits: The subrogated party proceeds against the third party, which can reduce or extinguish the original claimant’s liability. Contracts may include waivers or exclusions of subrogation. Some jurisdictions limit subrogation in certain settings to protect consumers, workers, or other protected rights.

Etymology: from Latin subrogare, to substitute one person for another, with the sense carried into modern legal usage. Related concepts include subrogation and assignment of rights.