Legal Question in Credit and Debt Law in California
How long does an ins. co. have?
How long does an insurance co. have to file a complaint against a debtor? Doesn't the ins company stand in the insured shoes and is subject to the same statute? I was sued by the insured once in civil court for this alledged debt (no judgement was rendered and no proof of the actual amount was determined) but they dismissed the case w/o prejudice. Now the insurance co is coming back 2 years after they dismissed the case trying to collect on this unproven amount. Discovery date was 4.5 years ago. The insurance co new of the case and had already paid the insured before they elected to dismiss the case - shouldn't they have stepped in and not waited an additional 2 years before filing a new action? Aren't they subject to the same discovery date? Isn't the legal definition of subrogation is they are subject to the same laws as their insured?
1 Answer from Attorneys
Re: How long does an ins. co. have?
The insurance company's subrogation claim is subject to the same statute of limitations as the claims of its insured. So, if the insured's claim is beyond the statute of limitations at the time the subrogation claim is filed, then the subrogation claim is barred by the same statute of limitations. Once a lawsuit is dismissed and then refiled, all the old discovery deadlines are wiped clean, and new discovery deadlines go into place.
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