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Making claim subrogation work despite bankruptcy

Wednesday, April 18, 2018 @ 12:14 PM | By Neil Colville-Reeves

What’s in a name? Plenty. Particularly if you are an insurer attempting to advance a subrogated claim and your insured is in bankruptcy protection proceedings. This is the circumstance faced by the insurer in Douglas v. Stan Fergusson Fuels Ltd. 2018 ONCA 192. What would have otherwise been a garden variety oil spill subrogated action was complicated by ongoing bankruptcy proceedings involving the insureds.

By the time the subrogated claim was issued both insureds had made assignments in bankruptcy. By application of s. 71 of the Bankruptcy...