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December 13, 2023

Insurer May Subrogate to the Rights of an Additional Insured Based on Contractual Right

Chicago Partner Geoffrey Waguespack was recently featured in the CLM Construction Claims Magazine, Winter 2023 Edition. A brief excerpt of the article is available below.

In a recently decided opinion, the Illinois Appellate Court, First District held that an insurer may subrogate to the rights of an additional insured under an insurance policy based on a contractual right to subrogation without consideration of equitable subrogation principles. The court explained that the general prerequisites for equitable subrogation do not control the express terms of a subrogation clause in a contract.

In Zurich American Insurance Company v. Infrastructure Engineering, Inc., — N.E.3d —, 2023 WL 6982150 (Ct. App. Ill. Oct. 24, 2023), the issue presented to the court was whether the general prerequisites for equitable subrogation should be applied when an insurer bases its right to subrogate on an express contractual subrogation provision. The court held that equitable principles do not apply to contract-based subrogation.

Click here to read the full article.