Court Rejects Insurer's Subrogation Claim to $85,820.21 Judgment

TRENTON, N.J. - A home insurer cannot use subrogation to recoup the $85,820.21 it paid to its insured for alternative living expenses from a judgment in the insured's favor on a different cause of action against other defendants, a New Jersey appellate court ruled on April 26. Muhammad v. Metropolitan Property and Casualty Insurance Co., et al., No. A-2121-08T2 (N.J. Super. Ct., App. Div.).

The New Jersey Superior Court Appellate Division reversed a Superior Court order allowing Metropolitan Property and Casualty Insurance Co. an assignment of the $85,820.01 judgment awarded to the homeowners from an insurance adjuster and a remodeling …