ERGO INSURANCE SE V IF P&C INSURANCE AS; GJENSIDIGE BALTIC AAS V PZU LIETUVA UAB DK

Case C-359/14, Court of Justice of the European Union, 21 January 2016

Insurance (motor) - Applicable law - Two assureds liable for same loss - Allocation of liability - Right of subrogation of paying insurer - Rome I Regulation on the Law applicable to contractual obligations, European Parliament and Council Regulation 593/2008 – Rome II Regulation on the Law applicable to non-contractual obligations, European Parliament and Council Regulation 864/2007 – Consolidated Motor Insurance Directive, European Parliament and Council Directive 2009/103/EC

This was a decision of CJEU in two joined cases with similar facts. A tractor coupled with a trailer caused damage to third parties. The owner of the tractor and the owner of the trailer were separately insured. The insurers of the tractor paid the victims and sought to exercise subrogation rights against the owner of the trailer. The question was, under which law was the right of subrogation to be determined.