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Insurance - Right Of Insurer Against An Insured Who Has Released The Tortfeasor After Receiving Payment From The Insurer, James A. Lee

Michigan Law Review

Plaintiff insured the defendant against loss on his car due to collision, paid its liability when the defendant's car was damaged by a third party, and took an assignment of plaintiff's claim against the third party to that extent. Defendant then released the third party from liability and plaintiff brought this action to recover the amount paid to the defendant. Held, plaintiff could recover from defendant only for the loss it had sustained by the release, and since plaintiff had failed to prove it could have recovered anything from defendant, it had shown no cause of action. Century Ins. …