Right of subrogation

Right of subrogation – in the litigation procedures, there is legal right given person, who has covered someone’s debt towards their creditors, to step in the shoes of the creditor and to request payment for whatever debt they have covered. This right is called a right of subrogation. The role of such right is to guarantee to payers that the sums they pay on behalf of the debtor, they can collect back. See also “subrogation”. This right origin from the Lain Law, where “surogatio” was the name of the right, given to person who has paid a mortgaged debt, to step in the position of the creditor.

In order this right to apply, three conditions have to apply:

– Regress right to be present;

– Presence of interest of this party to perform on behalf of the debtor towards the creditor;

– Satisfaction of the creditor by third person, i.e. – the debt to ba paid in full by third person. Because the rights of the creditor are transferred towards the third party, the procedure is called “substitution of creditors”.

Posted in: R