Advance Release Opinions – April 5

Review of the Connecticut Supreme Court’s advance release opinion about a breach of contract.

Breach of Contract

AMICA Mutual Insurance Company v. Muldowney – This case involves a subrogation claim for property damage by the landlord’s insurer against the tenant who caused it. Supreme Court has already confirmed that the default rule is that there is no subrogation right absent a “specific agreement” to the contrary, but didn’t spell out what the “specific agreement” must say to overcome the default rule. DiLullo v. Joseph, 259 Conn. 847 (2002). Trial court and Appellate Court both concluded that since the lease here made tenant liable for any property damage tenant caused and required tenant to buy insurance to cover it, there was a specific agreement otherwise that overcame the default rule. Supreme Court affirmed, essentially concluding that any agreement that puts the tenant on notice that tenant will be responsible for property damage, and needs to buy insurance to cover it, suffices to overcome the default rule; the agreement need not specifically mention subrogation.