North Star Reinsurance Corporation, Respondent-Appellant v. Continental Insurance Company, Respondent, and U.S…

Summary

The New York Court of Appeals affirmed the Appellate Division orders, rejecting the doctrine of preindemnification and applying the antisubrogation rule to bar insurers' subrogation claims in Prince and Valentin, while holding the rule does not apply in North Star because of policy exclusions. A dissent argued that the issues should be remanded for factual determination and that the antisubrogation rule should not be extended.