The Home Insurance Company v. The Hertz Corporation

375 N.E.2d 115 (1978)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

On August 2, 1974, Gary L. Gardner (D), an employee of defendant Ingram Barge, Inc. (D), negligently drove an automobile owned by Hertz Corporation (D) injuring P's insured and damaging his auto. P paid its insured's property damage and medical payments policy claims in the amount of $2,082.36 and it thereby became subrogated to the interests of the insured to the extent of those payments. Ingram (D) moved to dismiss P's action in that P's insured executed a full and final release of all personal injury and property damage claims arising from the accident in consideration of the payment to the insured of $6,000. It is undisputed that Ds had notice of P's subrogation rights prior to the settlement of the insured's suit and the signing of the release. The precise question is whether an unlimited general release by an insured of all claims against a tortfeasor bars a subrogation action by an insurer-subrogee against that tortfeasor, where the tortfeasor procures the release from the insured-subrogor with knowledge of the insurer's interest. The court dismissed P’s action and it was affirmed. P appealed.