Recent Case by Gordon Pearse Gates
Aetna Insurance Company, as property insurer, sued a contractor for the reimbursement of settlement funds paid to tenants on behalf of an insured landlord. This suit was consolidated with the landlord's action against the contractor for his alleged negligent performance. Judgment for the insurer and landlord was affirmed by the Louisiana Court of Appeal for the Fifth Circuit. Upon writ of review, the Supreme Court of Louisiana addressed whether, under article 2161(3) of the Louisiana Civil Code, an insurer is legally subrogated after payment of a claim to its insured. Held: an insurer, upon payment of a claim, is subrogated to the insured's rights by operation of article 2161(3). Aetna Insurance Company v. Naquin, 488 So. 2d 950 (La. 1986).
About the Author
Gordon Pearse Gates.
Citation
61 Tul. L. Rev. 689 (1987)