The defendants sought leave to appeal a motion decision permitting a fully subrogated insurer to continue an action in the names of insureds despite one insured being an undischarged bankrupt when the action was commenced.
The court held the proposed appeal raised important issues of insurance and insolvency law and that there was good reason to doubt the correctness of the motion judge's ruling.
Applying settled bankruptcy and subrogation principles, the court held that the bankrupt insured's cause of action vested in the trustee and that a subrogated insurer could assert only the rights available to the insured.
Because no assignment from the trustee was obtained before the limitation period expired, leave to appeal was granted.
