Post-Judgment Insurance Subrogation

What is post-judgment insurance subrogation?

Insurance subrogation is a principle recognized under Florida law that allows an insurance company to pursue reimbursement from a third party responsible for the losses it has paid to its insured. The idea behind subrogation is that the insurance company should not have to bear the cost of the loss when someone else is responsible for it. When an insurance company pays a claim, it essentially steps into the insured’s shoes and has the right to pursue the responsible party for reimbursement.

For post-judgment matters, insurance subrogation can come into play when the person who caused the loss is found liable for the damages, and the court orders them to pay the injured party. In this case, the insurance company may use subrogation to recover the amount it paid to its insured from the liable party. Critically, imitations within the relevant insurance policy or Florida law may limit an insurance company’s right to subrogation. Therefore, insurers must verify their right to pursue an insurance subrogation claim before intervening.

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What is a situation where an insurer would pursue post-judgment insurance subrogation?

Auto accidents are prevalent circumstances that lead to insurance subrogation. For example, imagine a driver causes an accident that results in damage to another driver’s car. Suppose the court finds the driver who caused the accident at fault and then orders them to pay damages to the other driver. However, the other driver’s car insurance company had already paid for the damages to the car and now wants to recover those losses from the liable driver. In this circumstance, the car insurance company may file a subrogation claim against the responsible driver to recover the amount it paid to its insured.

If the insurance company is successful in its subrogation claim, it will be able to recover the amount it paid to its insured from the liable driver. This recovery would reimburse the insurance company for its losses and prevent the responsible driver from avoiding financial responsibility for the damages he caused.

What are relevant laws related to post-judgment insurance subrogation in Florida?

The Florida Statutes govern a variety of insurance subrogation claims. Chapter 627, which covers insurance rates and contracts, guides many claims, including:

Section 627.7405 establishes rules for an insurer’s right to subrogation for motor vehicle and casualty insurance contracts. It provides that an insurer may be subrogated to the rights of its insured against any party responsible for a loss paid by the insurer.
Section 627.737 places caps on the amount an insurer can recover in a personal injury protection subrogation claim.

What is required to prove a case of post-judgment insurance subrogation in Florida?

The insurer must have a contractual right to subrogate, typically found in the insurance policy terms. This right allows the insurer to step into the shoes of its insured and pursue a claim against a third party liable for the losses the insurer paid. If the insurer has a right to subrogate upon the issuance of a final judgment, they must carefully ensure they abide by these essential steps:

Proper notice: The insurer must provide adequate notice to its insured, the judgment debtor, and any other parties involved in the case, as required by the insurance policy or Florida law. Ensuring proper notice may include providing notice of the insurance company’s intent to subrogate or a demand for payment from the judgment debtor.
File a motion to intervene: The insurer must file a motion to intervene in the underlying case to pursue payment on the judgment. The court will typically allow intervention if the insurer can show it has an interest in the judgment.
Statute of limitations: Florida law imposes strict time limits for bringing a subrogation claim. For example, under Florida Statutes section 95.11(2), the statute of limitations for breach of contract claims is five years. The insurer must pursue subrogation within the time allowed by law, or it may risk the court barring them from recovering the amounts it paid to its insured.
Execute the judgment: Once the insurer has successfully intervened, they may take steps to execute the judgment and recover the amounts paid out on the claim up to the limits of the judgment.

When a set of facts is appropriate to meet the requirements of post-judgment insurance subrogation, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to seek remuneration for amounts paid on the underlying claim.

To see what actions may be available for your unique situation, please contact our office to set up your initial consultation.

What are common defenses to post-judgment insurance subrogation in Florida?

Common defenses to post-judgment insurance subrogation in Florida include the following:

Improper notice: The insurer did not provide proper notice, as required by the insurance policy or law. For example, the judgment debtor may claim that the insurer did not provide adequate notice of its intent to subrogate or service of the notice did not accord with the applicable Florida laws and procedures.
Improper legal process: The insurer failed to follow proper legal processes in pursuing subrogation, such as failing to follow the applicable rules of civil procedure or to comply with the applicable laws and regulations.
Priorities of recovery: This means that the insurer’s subrogation claim is subordinate to other creditors or that the insurer does not have priority of recovery over other claimants. The likelihood of subordinate status depends on each case’s specific facts and the insurance policy provisions.

To see what defenses may be available for your unique situation, please contact our office to set up your initial consultation.

Have more questions about a post-judgment insurance subrogation-related situation?

Crucially, this overview of post-judgment insurance subrogation does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.