Lawyers' Title Guaranty Fund v. Sanders

While I agree with the majority the principle of equitable subrogation by operation of law certainly exists and is applicable to an insurer who has paid a loss; it is not applicable under the facts and circumstances here. I therefore dissent.

Buyers’ attorney neglected to make a requirement regarding a second mortgage existing on the property. After the purchase, buyers paid off the second mortgage. Buyers then made a claim against the errant attorney for malpractice. The attorney’s malpractice insurance carriers (insurers) paid the buyers’ malpractice claim.

As the majority points out there…