Different Types of Subrogation Lawsuits
Subrogation is a legal doctrine that enables an insurance company to pursue damages from a third party for losses and expenses it has incurred to compensate its insured. This process is used to protect the interests of the insurance companies and their insureds, as it allows them to recover the costs incurred due to someone else’s negligence or wrongful act.
Subrogation is especially common in car accidents and property damage cases, as it enables the insurance company to pursue the at-fault party for money that was paid out. According to the National Highway Traffic Safety Administration, there were more than 6 million car accidents in the United States in 2019. Insurance companies spent more than $305 billion in claims related to the accident. Subrogation plays an important role in helping insurers recoup some of these costs.
This blog post will provide an overview of the Florida subrogation process and discuss different types of subrogation lawsuits, their benefits, and the advantages of working with Florida Subrogation Defense lawyer to protect you in a subrogation lawsuit. Keep reading to learn more!
Overview of the Subrogation Process
When a car accident or property damage occurs, the at-fault party is liable for the damages they caused. The insurance company of the person at fault will typically be responsible for compensating the injured or affected party. However, sometimes, the person who is at fault may not have enough insurance coverage or may not have any insurance at all to cover the damages. This is when subrogation comes into play.
The injured party’s insurance company pays for expenses related to compensate the insured. Then, the insurance company will file a subrogation lawsuit against the at-fault party to recoup some or all of the costs they have paid out.
The process of filing and resolving a subrogation lawsuit involves several steps:
- The injured party’s insurance company will attempt to collect money before filing a lawsuit.
- The injured party’s insurance company files a lawsuit against the at-fault party.
- Discovery is conducted to determine the facts of the case.
- Potential settlement options are discussed, including mediation.
- If no settlement is reached, the case will proceed to trial.
- The court will decide if subrogation is appropriate and how much compensation the at-fault party should pay.
- The at-fault party pays the award to the injured party’s insurance company.
The plaintiff in a subrogation lawsuit is the injured party’s insurance company, while the defendant is the at-fault party.
Types of Subrogation Lawsuits
The types of subrogation lawsuits vary depending on the circumstances of the incident and the laws in the jurisdiction. Some of the more common types of subrogation lawsuits in Florida include:
Property Damage Subrogation Lawsuits
Property damage may occur as a result of an accident or negligence on the part of another party. Fires, floods, and other disasters can also cause property damage. When this happens, the plaintiff’s Homeowners or Business insurance company may seek reimbursement for the costs of repair and/or replacement by filing a subrogation lawsuit against the defendant. The cost of repairs is typically paid by the insurance company initially. After the money is paid, the insurance company will go after the at fault party to recoup the money. If the plaintiff is successful in the lawsuit, they will be awarded compensation to cover the money they paid out.
Uninsured Motorist Subrogation Lawsuit
Uninsured motorist claims are filed when the at-fault party does not have enough insurance or any insurance coverage to pay for a car accident. In this case, the insurance company may file a subrogation lawsuit against the at-fault party to recover the costs of medical bills, repairs, and other related expenses from the car accident. The insurance company will usually start this process by trying to collect the money through collection agencies before filing a lawsuit. If they are not able to resolve the issue pre-suit, they will then typically file a lawsuit in the county where the car accident took place. Often times they will also try to collect on interest that accrued from the point of them paying out the money.
Liability Subrogation Lawsuit
A liability subrogation lawsuit is a special type of lawsuit that can be brought when an individual or company has suffered damage due to another party’s negligence, such as a car accident or property damage. These suits are filed by the injured party to recover damages for their losses. The suit is filed in civil court, and the individual or company is represented by an attorney experienced in subrogation law.
Why Are Subrogation Lawsuits Necessary?
Subrogation lawsuits aim to help ensure that the insurance company is not held financially responsible for damages caused by someone else, or because someone else did not have certain mandatory insurance. By seeking reimbursement for the amounts paid out to the insured, the insurance company can avoid taking on an additional financial burden and can instead transfer the responsibility to the party who is actually at fault.
However, in Florida, subrogation lawsuits are not a form of punishment for those held responsible for damages. In fact, it is not uncommon for those parties to be unaware of the subrogation claim against them until they are served with a lawsuit. Subrogation lawsuits are also not intended to keep the insured party from receiving compensation for their losses, and any funds recovered by the insurance company will typically be applied toward the insured’s policy deductible.
When faced with a lawsuit, it is important to have an experienced subrogation defense attorney on your side. Attorney Roberto Vazquez has represented subrogation defendants across the state and against most insurance companies.
The Steps Involved in Filing a Subrogation Lawsuit
The process of filing a subrogation lawsuit can be complex and time-consuming.
Identify the responsible party
The first step in filing a subrogation lawsuit is when the insurance company identifies the party who caused the damages and their insurance company, if applicable. This will typically involve reviewing police reports, medical records, and other relevant documents.
Prepare the necessary paperwork
Once the responsible party has been identified, the insurance company will need to prepare and file the necessary paperwork to initiate the subrogation claim. This includes a claim form, a demand letter, and other documents depending on the type of legal action being taken.
Negotiate with the responsible party
In many cases, the responsible party’s insurance company will attempt to negotiate a settlement with the insurance company seeking reimbursement. The amount of reimbursement typically depends on the severity of the damages and other factors. If the at fault person does not have insurance, the other insurance company may reach directly to try to reach a settlement before filing a lawsuit.
File a lawsuit
If negotiations between the Parties fail to result in a settlement, the insurance company seeking reimbursement may decide to file a lawsuit against the responsible party. This is typically done through the court system and can involve a lengthy legal process.
Collect the judgment
If a judgment is made in favor of the insurance company seeking reimbursement, it must then collect the judgment from the responsible party. This may involve various collection processes, such as garnishing wages or bank accounts, liens against property, or seizing assets.
What To Do If You Are Sued for Subrogation
If you are sued for a subrogation case, it’s essential to take the matter seriously. You may be responsible for paying a large sum of money to the plaintiff insurance company. The best thing to do is contact an experienced Florida subrogation defense attorney right away. A subrogation defense attorney can help you understand your rights and responsibilities, as well as provide advice on how to best defend yourself against the lawsuit.
Morey Law Firm, P.A. provides comprehensive legal services related to subrogation lawsuits and other related personal injury defense matters. Our subrogation defense lawyers have a proven track record of working hard for our client’s to get them the best results possible.
Contact a Subrogation Defense Attorney Today for Help With Your Case Today!
Subrogation is a complex process that requires knowledge of insurance, personal injury law, and the legal system. At Morey Law Firm, P.A., our experienced Florida subrogation defense attorneys is dedicated to helping those who are being sued by insurance companies. We understand subrogation lawsuits often come as a surprise and it’s a complex process to navigate. The Subrogation Attorneys at Morey Law Firm, P.A. pride themselves on aggressive representation to make sure we achieve the best possible result. We can be reached via online submission, live chat, or by calling our office at (407) 426-7222.
If you’re in Orlando or the surrounding area, please visit our page dedicated to Orlando Subrogation Defense.
