Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Subrogation
n. 1. The substitution of one party for another whose debt the party pays, entitling the paying party to rights, remedies, or securities that would otherwise belong to the debtor. ( For example, a surety who has paid a debt is, by subrogation, entitled to any security for the debt held by the creditor and the benefit of any judgment the creditor has against the debtor, and may proceed against the debtor as the creditor would. 2. The principle under which an insurer that has paid a loss under an insurance 1Solicy is entitled to all the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy. See EQUITY OF SUBROGATION. Cf. ANTISUBROGATION RULE. "Subrogation is equitable assignment. The right comes into existence when the surety becomes obligated, and this is important as affecting priorities; but such right of subrogation does not become a cause of action until the debt is fully paid. Subrogation entitles the surety to use any remedy against the principal which the creditor could have used, and in general to enjoy the benefit of any advantage that the creditor had, such as a mortgage, lien, power to confess judgment, to follow trust funds, to proceed against a third person who has promised either the principal or the creditor to pay the debt." Laurence P. Simpson, Handbook on the Law of Suretyship 205 (1950). "Subrogation simply means substitution of one person for another; that is, one person is allowed to stand in the shoes of another and assert that person's rights against the defendant. Factually, the case arises because, for some justifiable reason, the subrogation plaintiff' has paid a debt owed by the defendant." Dan B. Dobbs, Law of Remedies ยง 4.3, at 404 (2d ed. 1993).
antisubrogation rule
insurance. the principle that an insurance carrier has no right of subrogation - that is, no right to assert a claim on behalf of the insured or for payments made under the policy - against its own insured for the risk covered by the policy. see subrogation.
conventional subrogation
Subrogation that arises by contract or by an express act of the parties.
equitable subrogation
See legal subrogation under SUBROGATION.
equity of subrogation
The right of a person who is secondarily liable on a debt, and who pays the debt, to personally enforce any right that the original creditor could have pursued against the debtor, including the right to foreclose on any security held by the creditor and any right that the creditor may have to contribution from others who are liable for the debt. - Also termed right of subrogation. See SUBROGATION.
legal subrogation
See SUBROGATION.
right of subrogation
See EQUITY OF SUBROGATION.