Insurer May Not Bring Cost-Recovery Claim On Behalf of Innocent Party, Court Rules

摘要

An insurer is barred from bringing a superfund cost-recovery claim to recoup payments made to a poli-cyholder even if the policyholder could have brought such a claim on its own behalf, a federal trial court has ruled (Chubb Custom Ins. Co. v. Space Systems/Loral Inc., N.D. Cal., No. 09-cv-044485, 4/20/11). Allowing an insurer of an innocent party to pursue an action against other parties under Section 107 (a) of the Comprehensive Environmental Response, Compensation, and Liability Act would nullify Section 112(c), which provides a right of subrogation, the U.S. District Court for the Northern District of California said in its April 20 decision.