Home Insurance Co. v. Hertz Corp.

71 Ill. 2d 210, 16 Ill. Dec. 484, 375 N.E.2d 115 (1978)

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Home Insurance Co. v. Hertz Corp.

Illinois Supreme Court
71 Ill. 2d 210, 16 Ill. Dec. 484, 375 N.E.2d 115 (1978)

  • Written by Sheryl McGrath, JD

Facts

Home Insurance Co. (Home) (plaintiff) issued an insurance contract to cover automobile damage and medical expenses for its insured. While the contract was in effect, Home’s insured was injured, and his car was damaged by the negligent driving of an employee of Ingram Barge, Inc. (Ingram) (defendant). The employee was driving a car owned by Hertz Corp. (Hertz) (defendant). Home paid approximately $2,000 to its insured for property damage and medical expenses, and as a result Home had a subrogation right to other funds received by the insured. Ingram and Hertz knew of Home’s subrogation right. Ingram then paid $6,000 to Home’s insured in a settlement. As part of the settlement, the insured signed a general release of all personal-injury and property-damage claims against Ingram. Home then sued Ingram in a subrogation action. Ingram filed a motion to dismiss, asserting that Home’s insured had signed a general release. The court of appeals ruled in favor of Ingram. Home appealed to the supreme court.

Rule of Law

Issue

Holding and Reasoning (Underwood, J.)

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