Brief Fact Summary. Plaintiff recovered from its insurance company based on a claim for damage due to Defendant’s negligence. Plaintiff then sued Defendant for negligence and for recovery for Defendant’s damage on behalf of the insurer. Defendant moved to dismiss on the grounds that because Plaintiff had already been paid, it was not the real party in interest and could not sue Defendant.
Synopsis of Rule of Law. Only a party that is directly interested in the subject matter of the litigation may bring suit against another party.
Issue. Can Plaintiff maintain an action against Defendant for the benefit of its insurer even though Plaintiff has already been reimbursed for the loss?
Held. No. Judgment affirmed. Under Kansas law, an action can only be maintained by a “real party in interest,” i.e. a party directly interested in the subject matter of the litigation. Because Plaintiff has already been compensated for its loss, it is not directly interested in the litigation and is therefore not a real party in interest. The insurer’s remedy is to maintain the action itself to recover for the amount paid to Plaintiff.
When the total amount of the loss of an insured property owner has been paid by the insurer, the right of action against the alleged wrongdoer rests in the insurer who, under K.S.A. 60-217, becomes the real party in interest and must bring the action for his reimbursement if one is to be maintained.View Full Point of Law