Valley Power Co. v. Toiyabe Supply Co., 396 P.2d 137 (Nev. 1964). · Go Syfert
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Valley Power Co. v. Toiyabe Supply Co., 396 P.2d 137 (Nev. 1964). Cases Citing This Book View Copy Cite
23 citation events (9 in the last 25 years) across 3 distinct courts.
Strongest positive: Arguello v. Sunset Station, Inc. (nev, 2011-06-02)
Treatment trajectory · 1966 → 2026 · click a year to view as-of
1966 1996 2026
Top citers, strongest first. 5 distinct citers. How cited ↗
cited Cited as authority (rule) Arguello v. Sunset Station, Inc.
Nev. · 2011 · confidence medium
Such a circumstance is known as "total subrogation." Valley Power Co. v. Toiyabe Supply, 80 Nev. 458, 461 , 396 P.2d 137, 138 (1964).
discussed Cited "see" Jaynes Corp. v. American Safety Indemnity Co. (2×)
D. Nev. · 2012 · signal: see · confidence high
See Valley Power Co. v. Toiyabe Supply Co., 80 Nev. 458 , 396 P.2d 137, 138 (1964) (an insurer who pays its insured in full for its claimed losses is the sole party in interest to assert a claim against others who may be ultimately liable.).
discussed Cited "see" Hartford Accident & Indemnity Co. v. Rogers (2×)
Nev. · 1980 · signal: see · confidence high
See Valley Power Co. v. Toiyabe Supply Co., 80 Nev. 458 , 396 P.2d 137 (1964).
discussed Cited "see, e.g." NORTH RIVER INS. CO. v. JAMES RIVER INS. CO. (NRAP 5) (2×)
Nev. · 2026 · signal: see also · confidence low
Co., 353 P.3d 991, 995-96 (Haw. 2015); see also Valley Power Co. v. Toiyabe Supply Co., 80 Nev. 458, 460 , 396 P.2d 137, 138 (1964) (permitting the insurer who compensated the insured in full to pursue an equitable subrogation claim against a third-party tortfeasor for any claims the insured would have had against the tortfeasor before any payments were made). 9 An insurance company is required to "effectuate prompt, fair and equitable settlements of claims in which liability of the insurer has become reasonably clear." NRS 686A.310(1)(e).
discussed Cited "see, e.g." NAD, Inc. v. Eighth Judicial District Court (2×)
Nev. · 1999 · signal: see also · confidence low
See NRS 17.275; see also Valley Power Co. v. Toiyabe Supply Co., 80 Nev. 458, 460 , 396 P.2d 137, 138 (1964) However, in Nevada, an insurer is neither a subrogee nor a real party in interest in a third party contribution instituted by its insured when the insurer enters into a valid loan receipt agreement with its insured.
Retrieving the full opinion text from the archive…
VALLEY POWER COMPANY and TOWNSITE DEVELOPMENT COMPANY, Appellants,
v.
TOIYABE SUPPLY CO. and NEVADA BANK OF COMMERCE, Respondents
4763.
Nevada Supreme Court.
Nov 4, 1964.
396 P.2d 137
Vargas, Dillon, Bartlett & Dixon and Alex. A. Garrotoay, of Reno, for Appellants., Gray and Horton, and Earl M. Hill, of Reno, for Respondents.
Badt, McNamee, Thompson.
Cited by 10 opinions  |  Published

OPINION

By the Court,

Thompson, J.:

In the lower court Valley Power Company and Town-site Development Company were granted leave to intervene in a pending action between Federal Insurance Company, plaintiff, versus Toiyabe Supply Company and Nevada Bank of Commerce, defendants. Subsequently, upon defendants’ motion, the intervenors’ complaint was dismissed with prejudice for the reason that the intervenors were not real parties in interest. The lower court found, upon the record then before it, that the sole real party having an interest in the subject matter of the case was the plaintiff Federal Insurance Company. [1] The intervenors appeal from the order of dismissal.

The Federal Insurance Company issued its comprehensive bond and policy to Basic, Incorporated, and any[*460] subsidiary corporation or corporations, the assured, binding itself to pay the assured all losses (up to $100,-000) sustained through any fraudulent or dishonest acts (including larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction or willful misapplication) committed by employees of the assured. Valley Power Company and Townsite Development Company, intervenors-appellants, are subsidiary corporations of Basic, Incorporated and, therefore, assureds under the policy. An employee on the payroll of Basic, Incorporated, but whose duties were primarily connected with the subsidiary corporations, misappropriated funds of the subsidiary corporations. For the purposes of this opinion it is not necessary to relate how the defalcations were accomplished. The resulting losses claimed to have been incurred by Valley Power Company ($26,703.13), and Townsite Development Company ($15,017.19), were paid in full by Federal Insurance Company as required by the comprehensive bond and policy which it had issued. Federal Insurance Company commenced an action against Toiyabe Supply Company and Nevada Bank of Commerce (the predicate for which we need not now state) to recover the sums paid under its policy to the assureds and seeking, in addition, exemplary damages. [2]

Having paid the assureds in full for their claimed losses, the insurer was subrogated, by operation of law, to the rights, if any, which the assureds may have had against the defendants before such payments were made. Talley v. Fawcett, 144 Colo. 130, 355 P.2d 302; Gardner v. Walker, 373 P.2d 598 (Wyo. 1962); American Fidelity & Casualty Co. v. All American Bus Lines, 10 Cir., 179 F.2d 7; Link Aviation, Inc. v. Downs, C.A., D.C., 325 F.2d 613; Milwaukee Insurance Co. v. McLean[*461] Trucking Co., 256 N.C. 721, 125 S.E.2d 25. [3] in such a case the insurer, Federal Insurance Company, is the sole party in interest, and the only one who may assert a claim against those thought to be ultimately liable. None of the requisites designated by statute, NRS 12.130, or rule, NRCP 24, to support intervention, are present when total subrogation has eliminated the interest of the assured.

Affirmed.

Badt, C. J., and McNamee, J., concur.
1

NRCP, Rule 17(a) reads, “Real Party in Interest. Every action shall be prosecuted in the name of the real party in interest; but an executor, administrator, guardian, trustee of an express trust, a party with whom or in whose name a contract has been made for the benefit of another, or a party authorized by statute may sue in his own name without joining with him the party for whose benefit the action is brought; and when a statute so provides, an action for the use or benefit of another shall be brought in the name of the State.”

2

The complaint in intervention adopted by reference some of the allegations of tbe complaint of Federal Insurance Company. Tbe adopted allegations show without question that tbe intervenors seek to recover tbe same losses for wbicb they bad already been paid by Federal Insurance Company.

3

See also United States v. Aetna Casualty & Surety Co., 338 U.S. 366, S.Ct. 207, 94 L.Ed. 171, 70, 12 A.L.R.2d 444, where the United States Supreme Court discussed the real party in interest rule as it relates to partial subrogation.