When one party takes on the legal rights of another, especially substituting one creditor for another. Subrogation can also occur when one party takes over another's right to sue. For example, when an insurance company compensates a policy holder for an injury, often the policy holder's right to sue the person who harmed him is subrogated, meaning it is transferred from him to the insurance company.
Definition from Nolo’s Plain-English Law Dictionary
A taking on of the legal rights of someone whose debts or expenses have been paid. For example, subrogation occurs when an insurance company that has paid off its injured claimant takes the legal rights the claimant has against a third party that caused the injury, and sues that third party.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:25 pm