The law firm K&P successfully represented an office building management committee (hereinafter referred to as "X") in a subrogation lawsuit against oo Fire & Marine Insurance.
Case Summary
(Please note that the actual case has been adapted for ease of understanding.)
A was the owner of a luxury foreign car and was insured with oo Fire & Marine Insurance's automobile insurance.
A parked their car in the underground parking lot of an office managed by X.
Lime deposits fell from the ceiling in the office's underground parking lot, causing stains on A's vehicle.
A left the stains from the lime deposits unattended for several months before taking the car for repairs.
The auto repair shop charged approximately 20 million KRW for the repairs, which included the replacement of several parts.
oo Fire & Marine Insurance paid the full repair cost to the auto repair shop and then claimed the same amount from X as a subrogation payment.
K&P Law Firm's Response
K&P Law Firm argued the following points:
- Removing the lime deposits from the car would only cost a few tens of thousands of KRW, and repainting was not necessary.
- A left the stains unattended for several months, exacerbating the damage.
- Even according to the compensation limit of the standard auto insurance policy, the damage from the lime deposits is less severe than paint damage.
- There was no evidence that A's vehicle required any part replacements.
- Oo Fire & Marine Insurance failed to provide any evidence supporting their decision that part replacements were necessary.
- Oo Fire & Marine Insurance conducted a subjective damage assessment, resulting in excessive repair costs, which X should not be responsible for paying.
- There was never an appraisal conducted for the car repair costs.
- Comparing the repair shop's estimate and the actual repair details reveals items in the repair list that were not included in the estimate.
- There is a significant difference between the initial damage estimate in Oo Fire & Marine Insurance's claim file and the actual insurance payout.
- The car repair details do not align with the repair standards set by the Insurance Development Institute.
Additionally, K&P Law Firm explained to the court the cases in which an insurance company pays the insurance amount, but subrogation does not occur due to the special nature of auto insurance. Instances in which subrogation does not occur include:
- Single-car accidents, hit-and-run accidents, and one-sided at-fault accidents - These cases do not involve any subrogation targets for the insurance company to acquire under Article 682 of the Commercial Act.
- If the insured (A in this case) is responsible for the damage, the insurance company may not exercise its right to subrogation for the increased damage, even if it pays the insurance money.
- In this case, there is a possibility that the damage was exacerbated by A's long-term neglect of the vehicle, causing the hardened state to become entrenched. Oo Fire & Marine Insurance paid the insurance money without verifying the extent of the damage exacerbated by A's neglect of the vehicle.
Court's Decision
The court accepted K&P Law Firm's arguments and ruled in favor of the defendant, resulting in the plaintiff's loss.
In the end, X did not have to pay any money to oo Fire & Marine Insurance.
===
Tel. +82 32 864 8300
Email: info@kimnpark.com
Please Visit our Website:
