Why You Should Consider Subrogation. . .

The Delaware State Supreme Court recently upheld the dismissal of a lawsuit, filed against the tobacco industry, by the foreign governments of Panama and Sao Paulo, Brazil. The nations argued that they had lost money in the treatment of citizens suffering from tobacco use complications. Ordinarily, governments, employers, and other organizations subrogate – meaning they step into the shoes of the person actually suffering as a result of the tobacco use – and pursue the responsible party in the victim’s name. In this case, the plaintiffs instead chose to (unwisely) sue tobacco companies directly. Subrogation works because the person who bought, used, and suffered due to the tobacco use has the claim. The plaintiffs in this case, however, tried to file a claim directly against parties they had never had direct dealings with, and failed.

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