Subrogation Alert: Insurer May Not File a Subrogation Action Against Third Parties if the Insured is a Suspended Corporation

On November 30, 2018, the California Court of Appeal decided Travelers Prop. Cas. Co. of America v. Engel Insulation, Inc., 2018 WL 6259032. The Court affirmed the granting of the defendant’s motion for judgment on the pleadings without leave to amend. The Court found that Travelers was barred from pursuing its claim for subrogation under Revenue and Taxation Code Section 23301 because its insureds were suspended corporations under California law.

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