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Insurers Should Beware The Voluntary Payment Defense

By Peter Billis and Charles Rocco ( September 27, 2017, 4:19 PM EDT) -- It stands to reason that a tortfeasor should not be permitted to escape liability by virtue of a legal technicality — yet the "voluntary payment" defense remains a consistent pleading in response to insurance subrogation actions across the country. What is a voluntary payment? Generally, in cases where one party pays the debt of another, the voluntary payment doctrine prevents the paying party from seeking recovery for money that it paid voluntarily — without any fraud, duress, compulsion or mistake of fact. This makes sense in certain circumstances, but not in the context of insurance subrogation....

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