The Subrogation Strategist

Rhode Island’s governor, Daniel McKee, signed 2021 R.I. HB 5867/2021 R.I. SB 736 into law on July 13, 2021. The enactment changes Rhode Island’s products liability law and impacts how courts treat a manufacturer’s or seller’s claim that it is not liable due to a subsequent alteration or modification of the product.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On July 15, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

Real Flame Recalls Arroyo and Hideaway Wood Burning Fire Pits Due to Fire Hazard; Sold Exclusively at Crate and Barrel (Recall Alert).

According to the CPSC ... Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On July 8, 2021, the CPSC announced the following recall related to a product that presents a fire hazard:

ECHO EGi-2300 Watt Generators Recalled Due to Fire and Burn Hazards; Manufactured by TTI (Recall Alert).

According to the CPSC, “[t]he unit can overheat, posing ... Continue Reading

Although the focus of most subrogation cases is usually on proving liability, determining the appropriate measure of damages is just as important. Sometimes turning on a nuanced argument for recoverability, an adverse holding can significantly boost or reduce the total damages in a case. The Court of Appeal of Florida, Fourth District (Court) recently decided such an issue in a case involving subrogation, holding that the defendants owed much more than they originally anticipated.Continue Reading

In Westfield Inc. Co. v. Ritcher, No. 20-CV-12692, 2021 U.S. Dist. Lexis 94926, the United States District Court for the Eastern District of Michigan considered whether a residential tenant was an implied co-insured on the landlord’s insurance policy, and thus shielded from a subrogation claim brought by the landlord’s carrier for fire damage caused by the tenant’s negligence. The court found that the tenant was an implied co-insured on the landlord’s insurance policy, but only with regards to the apartment that the tenant leased. The tenant was not shielded from claims for damage to the rest of the building, the contents of other residents and the landlord’s rental loss income.Continue Reading