Fireman's Fund Insurance v. Pitco Frialator Co.

Piteo Frialator Company appeals a denial of summary judgment. The trial court determined that Wisconsin’s Insurance Security Fund law, ch. 646, Stats., does not prohibit a subrogated insurance company from exercising its right of subrogation directly against an individual insured whose insurer has become insolvent. We conclude that, to the extent of the policy limits, no subrogation claim may lie against the individual insured. Because the damages did not exceed the policy limits in this case, we reverse and remand with directions to enter judgment in favor of Piteo.

The subrogated insurers…