subrogation

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subrogation

The substitution of one person for another with respect to legal rights such as a right of recovery; occurs when a third person, such as an insurance company, has paid a debt of another or claim against another and succeeds to all legal rights which the debtor or person against whom the claim was asserted may have against other persons.
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The same news article mentioned above quotes another attorney who calls it a shame that insurers won't provide an "immediate solution" for homeowners by simply settling defective drywall-related claims, and then subrogating against the manufacturers.