While a Fiduciary Surety has a legal obligation to pay the principal in the event of trust asset loss, it may also have a may have a right of subrogation against the entity or person that caused the principal to default.
Subrogation law creates opportunities to recover loss on bond payouts. Many sureties miss this avenue of redress due to the complex nature of subrogation law. Subrogating a bond claim requires inventive and resourceful recognition of third party liability in order to be successful. The subrogation of fiduciary surety bonds also requires a cost-conscious approach.
Rathbone Group pursues all entities and guarantors on issued bonds. Even successor corporations have exposure when potential parties are identified and liability can be applied.
We explore avenues of recovery including criminal restitution orders for individuals or companies, and receiverships or inventory levies performed on any existing businesses.