Home > West's Encyclopedia of American Law > Subrogation

The substitution of one person in the place of another with reference to a lawful claim, demand, or right, so that he or she who is substituted succeeds to the rights of the other in relation to the debt or claim, and its rights, remedies, or SECURITIES.

There are two types of subrogation: legal and conventional. Legal subrogation arises by operation of law, whereas conventional subrogation is a result of a contract.

The purpose of subrogation is to compel the ultimate payment of a debt by the party who, in EQUITY and good conscience, should pay it. This subrogation is an equitable device used to avoid injustice.

Legal subrogation takes place as a matter of equity, with or without an agreement. The right of legal subrogation can be either modified or extinguished...