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Question 23
11. Leon is the owner of a condominium unit located directly above the condominium unit owned by Anj. In 2014, Leon undertook renovations in his unit’s bathroom, which caused water to leak from his bathroom down to Anj’s unit, and caused extensive damage to Anj’s belongings. As Anj had obtained property insurance on her unit and its contents from Proverbial Insurance Co. (PIC), Anj was able to recover the value of the damage in September 2016.
In October 2022, PIC, as subrogee of Anj, sued Leon to recover the insurance proceeds it paid to Anj. Leon interposed prescription to dismiss the suit of PIC. PIC counters that the payment of the insurance proceeds in 2016 created, by way of legal subrogation, a 10-year period within which to file the suit against Leon.
Is PIC correct? Explain briefly. (5 points)
Model answer · ALAC
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