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If the Shoe Fits: Subrogation Possible After Insurer Paid Under Later-Rescinded Policy

Motor Vehicle Litigation / July 27, 2021

In Esurance Prop & Cas Ins Co v Michigan Assigned Claims Plan (“MACP”), __ Mich __; __ NW2d __ (2021) (Docket No. 160592), the Supreme Court held that Esurance could invoke equitable subrogation after paying no-fault benefits under a policy that Esurance later rescinded.

The Court rejected the MACP’s argument that equitable subrogation should not be allowed because Esurance was a “mere volunteer.”  

The Court reversed a published Court of Appeals decision, Esurance Prop & Cas Ins Co v MACP, 330 Mich App 584 (2019).

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