Tuesday, February 08, 2011

Recent GA USDCT Case Where Court Rules on the Make Whole Doctrine

The make whole doctrine is an equitable insurance law principle. The general rule under the doctrine of equitable subrogation is that where an insured is entitled to receive recovery for the same loss from more than one source such as an insurer and the tortfeasor, it is only after the insured has been fully compensated for all of the loss that the insurer acquires a right to subrogation, or is entitled to enforce its subrogation rights. The rule applies as well to instances in which the insured has recovered from the third party and the insurer attempts to exercise its subrogation right by way of reimbursement against the insured’s recovery.

In that exciting context, here is a recent USDCT opinion upholding the make whole doctrine: