Understanding Subrogation in Insurance Claims

Why is it NOT possible for Matt to sue Zach?

When Zach intentionally burned down Matt's restaurant, Matt's insurer paid the claim and then pursued subrogation. Matt is furious about the incident and wants to sue Zach. Why is it NOT possible for Matt to sue Zach?

Answer:

Matt can't sue Zach because his insurer pursued subrogation. This means that after paying Matt's claim, his insurer has taken the right to sue Zach for the damages. Therefore, Matt can't sue Zach himself.

When an insurance company pays out a claim on behalf of the insured, they often have the right to pursue subrogation. Subrogation is a legal principle that allows the insurer to step into the shoes of the insured and take over the rights to pursue legal claims against the responsible party.

In the case of Matt and Zach, when Zach intentionally burned down Matt's restaurant, Matt's insurer paid the claim for the damages caused by the fire. By doing so, the insurer acquired the right to pursue legal action against Zach to recover the costs of the claim they paid out. This means that the right to sue Zach has been transferred from Matt to his insurer through the process of subrogation.

As a result, Matt is unable to sue Zach directly because the rights to pursue legal action have been transferred to his insurer. It is the insurer's responsibility to seek compensation from Zach for the damages caused by the fire.