The Importance Of Clarity In Subrogation Stipulations And Agreements

Pulitzer prize winning historian David McCullough once said that ‘Writing is thinking. To write well is to think clearly. That’s why it is so hard.’

When claims adjusters, subrogation professionals, and/or subrogation lawyers document a settlement or stipulation with an insured’s or employee’s attorney regarding a subrogation interest, getting all the right words in the right order is only half of the job.

You must clearly understand all of the rights and nuances surrounding the underlying litigation and the subrogation rights you are looking to enforce in order to effectively document a settlement agreement or stipulation that will not be subject to attack.

If you are not aware of and thinking about all of the ramifications, options, and variables which are at play, chances are you will wish you had a second bite at drafting that settlement agreement. Far too many learn the hard way.

A federal court in Colorado provides an excellent example of how failure to adhere to the above advice can become an expensive mistake.