The insurer of a corporation that has been suspended for nonpayment of taxes cannot assert a subrogation claim after paying the insured corporation’s judgment. In a subrogation claim, the insurer stands in the shoes of the insured. And since the insured corporation has been suspended and cannot sue, neither can its insurer on a subrogation claim. An insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation.
California Court of Appeal, Third District (Renner, J.); November 30, 2018; 29 Cal. App. 5th 830