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Court of Appeal of England and Wales upholds 'top-down' subrogation; insurers' claim to US$15m Hanjin settlement recoveries fails (RSA v Textainer)

Published on: 23 May 2024

Published by a Law360 reporter
Legal News
Article summary

Insurers lose appeal over US$15m Hanjin Shipping settlement (Royal & Sun Alliance Insurance plc v Textainer Group Holdings Ltd)

The Court of Appeal ruled in favour of container company Textainer Group Holdings Ltd, rejecting a claim by four insurers centred on doctrine of subrogation in insurance law. The insurers sought to take a slice of the sums Textainer recovered from the insolvent estate of Korean shipping behemoth Hanjin, which to date have so far amounted to US$15m. However, the three-judge panel reached unanimous view and affirmed the 2022 High Court ruling, holding that Textainer could retain any payments from Hanjin to compensate for its uninsured financial losses, rather than having insurers extract a share of those recoveries...

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