{"id":902526,"date":"2024-04-11T15:26:37","date_gmt":"2024-04-11T21:26:37","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=902526"},"modified":"2024-04-11T15:26:39","modified_gmt":"2024-04-11T21:26:39","slug":"subrogation-insurers-should-beware-of-prior-suits-involving-insured","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/","title":{"rendered":"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured"},"content":{"rendered":"\n<p>Gus Sara | <a href=\"https:\/\/subrogationstrategist.com\/2024\/02\/28\/a-matter-judged-subrogating-insurers-should-beware-of-prior-suits-involving-the-insured\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The Subrogation Strategist<\/a><\/p>\n\n\n\n<p>In&nbsp;<em>New Jersey Mfrs. Ins. Co. v. Lallygone LLC,&nbsp;<\/em>No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated and tried claims related to the same underlying incident with the same defendant, Lallygone LLC (the defendant). The Appellate Division affirmed the trial court\u2019s finding that the prior lawsuit extinguished the carrier\u2019s claims.<\/p>\n\n\n\n<p>In&nbsp;<em>Lallygone LLC<\/em>, the insured hired the defendant to renovate a detached garage on his property. In March 2022, while the defendant\u2019s employees were removing existing concrete slabs, the garage collapsed. After the incident, the insured stopped paying the defendant. In addition, the insured filed a claim with the carrier, which ultimately paid the insured over $180,000 for the damage under its property policy. The carrier sent a subrogation notice letter to the defendant.<\/p>\n\n\n\n<p>Unbeknownst to the carrier, in October 2022, the defendant sued the insured for failing to pay the invoice related to the work performed on the garage before it collapsed. The insured filed counterclaims for breach of contract and violation of the Consumer Fraud Act. The insured stated in his pleading that the insurance claim with the carrier had been resolved. The insured\u2019s attorney certified that there were no other pending matters and no other parties who should be joined.<\/p>\n\n\n\n<p>In January 2023, the trial court deciding the matter conducted a two-day bench trial. The insured did not provide any expert testimony in support of his claim that the defendant\u2019s improper work caused the garage to collapse. The insured only provided his observations and limited experience as a contractor. The court found in favor of the defendant and ordered the insured to pay the defendant over $9,000 for the outstanding invoice.<\/p>\n\n\n\n<p>In February 2023, the carrier filed a subrogation action against the defendant, alleging negligence, breach of contract and violation of the Contractor\u2019s Registration Act and Consumer Fraud Act. The defendant filed a motion to dismiss on grounds of&nbsp;<em>res judicata<\/em>&nbsp;and the entire controversy doctrine. The trial court hearing the subrogation action granted the motion to dismiss, holding that the insured already sued the defendant for claims arising from the same factual nexus of events and the same contract, and failed to meet its burden. The court held that the carrier could not get a second bite at the apple. The carrier appealed the dismissal, arguing that it was not a party to the first action and thus did not have the opportunity to present its claims, which were far greater in value than the insured\u2019s claims.<\/p>\n\n\n\n<p>The Appellate Division acknowledged that for&nbsp;<em>res judicata<\/em>&nbsp;to apply there must be four elements: 1) a final judgment by a court of competent jurisdiction, 2) identity of issues, 3) identity of parties and 4) identity of causes of action. The parties conceded that the causes of action and the issues were identical. However, the carrier argued that the parties were not identical because a subrogating carrier is a different party than its insured. The defendant disagreed, arguing that a subrogating carrier \u201cstands in the shoes\u201d of its insured as subrogee, and is thus bound by the prior actions of the insured.<\/p>\n\n\n\n<p>The Appellate Division agreed with the defendant. The court found that when the insured brought counterclaims against the defendant, he initiated an action to recover costs associated with the collapse of the garage. Thus, the court held that carrier\u2019s subrogation interest was represented by its insured and tried to a final decision on the merits. The Appellate Division affirmed the dismissal of the carrier\u2019s lawsuit.<\/p>\n\n\n\n<p>The&nbsp;<em>Lallygone LLC<\/em>&nbsp;decision establishes that, in New Jersey, a subrogating insurance carrier and its insured are considered identical parties. Thus, if an insured brings a claim against an alleged tortfeasor, it is imperative that the subrogating carrier intervene into the action\u2014or file a separate lawsuit and move to consolidate the cases\u2014before the insured\u2019s claim is adjudicated. If an insurance carrier does not join or consolidate with the insured\u2019s claim prior to judgment, then the carrier will be barred from bringing its subrogation claim.<\/p>\n\n\n\n<p>According to the\u00a0<em>Lallygone LLC<\/em>\u00a0case, it does not appear to be relevant that the defendant was aware of the subrogation claim. It also did not seem relevant that the insured and the defendant misrepresented that there were no related claims. This decision serves as a warning to <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/equitable-subrogation-construction-defect-claim\/\">subrogation<\/a> professionals in New Jersey to be sure to check with the insured for any claims or lawsuits relating to the same set of facts giving rise to the subrogation claim.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gus Sara | The Subrogation Strategist In&nbsp;New Jersey Mfrs. Ins. Co. v. Lallygone LLC,&nbsp;No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\">Continue reading <span class=\"screen-reader-text\">A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10721],"tags":[9895,22,233],"class_list":["post-902526","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-advise-consult","tag-insurance","tag-subrogation","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"description\" content=\"decision serves as a warning to subrogation professionals to check the insured for any claims or lawsuits relating to the same set of facts\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"decision serves as a warning to subrogation professionals to check the insured for any claims or lawsuits relating to the same set of facts\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise &amp; Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-11T21:26:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-11T21:26:39+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured\",\"datePublished\":\"2024-04-11T21:26:37+00:00\",\"dateModified\":\"2024-04-11T21:26:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\"},\"wordCount\":841,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise &amp; Consult\",\"insurance\",\"Subrogation\"],\"articleSection\":[\"Insurance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\",\"name\":\"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured - Advise &amp; Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2024-04-11T21:26:37+00:00\",\"dateModified\":\"2024-04-11T21:26:39+00:00\",\"description\":\"decision serves as a warning to subrogation professionals to check the insured for any claims or lawsuits relating to the same set of facts\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise &amp; Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured - Advise &amp; Consult, Inc.","description":"decision serves as a warning to subrogation professionals to check the insured for any claims or lawsuits relating to the same set of facts","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/","og_locale":"en_US","og_type":"article","og_title":"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured - Advise &amp; Consult, Inc.","og_description":"decision serves as a warning to subrogation professionals to check the insured for any claims or lawsuits relating to the same set of facts","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/","og_site_name":"Advise &amp; Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2024-04-11T21:26:37+00:00","article_modified_time":"2024-04-11T21:26:39+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured","datePublished":"2024-04-11T21:26:37+00:00","dateModified":"2024-04-11T21:26:39+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/"},"wordCount":841,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise &amp; Consult","insurance","Subrogation"],"articleSection":["Insurance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/","name":"A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured - Advise &amp; Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2024-04-11T21:26:37+00:00","dateModified":"2024-04-11T21:26:39+00:00","description":"decision serves as a warning to subrogation professionals to check the insured for any claims or lawsuits relating to the same set of facts","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/subrogation-insurers-should-beware-of-prior-suits-involving-insured\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise &amp; Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3MMS","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/902526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=902526"}],"version-history":[{"count":2,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/902526\/revisions"}],"predecessor-version":[{"id":902528,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/902526\/revisions\/902528"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=902526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=902526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=902526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}