Q&As

When can the doctrine of subrogation apply in the context of a general commercial agreement (ie outside the context of insurance)?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on: 19 May 2022

Subrogation allows a person (A) to bring a claim for losses against a third party (C) where the right to bring such a claim has accrued to another (B). Such claims are common in the context of insurance, where the insurer (A) brings a claim against C to recover losses caused by C to B, and where A has paid out to B under the terms of the insurance policy. Subrogation is founded in equity and is aimed at the prevention of unjust enrichment by enabling A to step into B’s shoes to bring the action that accrues to B.

Subrogation amounts to a transfer of rights from one person to another without an assignment or assent and which takes place by operation of law: Orakpo v Manson Investments Ltd. Outside of the insurance sphere, subrogation may arise in a commercial agreement through a contractual provision such as an indemnity. For example, A

Chris Bryden
Chris Bryden

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).

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Jurisdiction(s):
United Kingdom
Key definition:
Agreement definition
What does Agreement mean?

Agreement is broadly defined under EU and UK competition law so as to include activities ranging from a legally enforceable contract between two or more parties to an informal albeit clear understanding, whether entered into in writing or verbally.

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