Allstate Insurance vs. Toyota (C.A. No. 09-50138, Delaware County Court of Common Pleas; June 9, 2009).

Stewart C Crawford Jr.

Practice Area:Insurance

Outcome:Economic Loss Doctrine Not Applicable to Subrogated Insurance Carrier

Description:Successfully argued that a subrogated insurance carrier could recover in tort (rather than in contract) because the carrier lacked privity, the uniform commercial code did not recognize a remedy, and it is improper to employ contract remedies to abrogate equitable subrogation rights. Our model has since been followed in California, Florida, and Oregon.