Subrogation
The substitution of one party for another regarding a legal claim or right, allowing the substituting party to pursue the claim.
Encyclopedia entry: Subrogation
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subrogation
Subrogation is the process where one party assumes the legal rights of another, typically by 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 policyholder for an injury , the policyholder's right to sue the person responsible for the harm may be subrogated, meaning it is transferred from the policyholder to the insurance company.
[Last reviewed in June of 2024 by the Wex Definitions Team
]
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.