State guide · West
California subrogation law guide
California courts adopted pure comparative negligence, so the insured's fault reduces the recovery but never bars it. Under Proposition 51, noneconomic damages are several only, while economic damages stay joint and several.
California at a glanceCA
- Property damage
- 3 years
- Bodily injury
- 2 years
- Fault rule
- Pure comparative
- Gov. notice
- 180 days
Overview
California is the largest subrogation market in the country, and its rules mostly favor the recovering carrier. Pure comparative fault under Li v. Yellow Cab means an insured's own negligence only reduces the claim, and because Proposition 51 leaves economic damages joint and several, subrogated property damage can be collected in full from any liable defendant. Property damage claims run three years under Code Civ. Proc. 338, injury claims two years, and written contract claims four. The traps are procedural. The Government Claims Act requires a claim to the public entity within six months for personal property and injury losses and within one year for real property damage, followed by short suit deadlines. The made-whole rule applies unless the policy gives the carrier clear priority and the carrier takes part in the recovery. Wildfire losses add another layer: claims against investor-owned electric utilities often proceed on inverse condemnation as well as negligence, and Senate Bill 254 (2025) changed how insurers may transfer those subrogation claims. The economic loss rule and the Right to Repair Act shape construction defect recoveries.
Quick reference with citations
- Property damage SOL
- 3 years
- Cal. Code Civ. Proc. 338(c)(1) (injury to real or personal property)
- Bodily injury SOL
- 2 years
- Cal. Code Civ. Proc. 335.1
- Product liability
- 2 years for personal injury (Cal. Code Civ. Proc. 335.1) and 3 years for property damage (Cal. Code Civ. Proc. 338(c)(1)); no product statute of repose; 4 years for UCC warranty claims (Cal. Com. Code 2725); construction defect repose of 4 years for patent and 10 years for latent defects (Cal. Code Civ. Proc. 337.1 and 337.15)
- Written contract
- 4 years
- Contract and indemnity recoveries
- Comparative fault rule
- Pure comparative
- Li v. Yellow Cab Co., 13 Cal. 3d 804 (1975); Cal. Civ. Code 1431.2
- Government notice of claim
- 180 days
- Under the Government Claims Act, a claim for death, personal injury, or damage to personal property or growing crops must be presented to the public entity within 6 months after accrual; all other claims, including damage to real property, within 1 year (Cal. Gov. Code 911.2). An application to present a late claim may be made within 1 year of accrual (Gov. Code 911.4). After written rejection, suit must be filed within 6 months; if no written rejection notice is given, within 2 years of accrual (Gov. Code 945.6).
Fault rule in practice
How California's rule changes a $50,000 recovery.
California courts adopted pure comparative negligence, so the insured's fault reduces the recovery but never bars it. Under Proposition 51, noneconomic damages are several only, while economic damages stay joint and several.
Authority: Li v. Yellow Cab Co., 13 Cal. 3d 804 (1975); Cal. Civ. Code 1431.2
| Insured's share of fault | Recoverable in CA | Under pure comparative |
|---|---|---|
| 0% | $50,000 | $50,000 |
| 20% | $40,000 | $40,000 |
| 50% | $25,000 | $25,000 |
| 60% | $20,000 | $20,000 |
Doctrines that move the number
California doctrine checklist.
Made-whole doctrine
California applies the made-whole rule as a default: absent a clear contrary provision, the insurer cannot take from third-party funds until the insured is made whole for the entire loss. Sapiano v. Williamsburg National Insurance Co., 28 Cal. App. 4th 533 (1994) held that general subrogation language does not displace the rule, particularly when the carrier does not take part in the recovery. 21st Century Insurance Co. v. Superior Court, 47 Cal. 4th 511 (2009) excludes the insured's attorney fees from the made-whole calculation but requires the carrier to share those fees pro rata.
Economic loss doctrine
Seely v. White Motor Co., 63 Cal. 2d 9 (1965) limits claims for damage to a product itself to warranty, and Aas v. Superior Court, 24 Cal. 4th 627 (2000) applied the same principle to construction defects that had not caused property damage. Damage to other property stays in tort, and the Right to Repair Act (Civ. Code 895 et seq.) now governs most new residential construction claims.
Joint and several liability
Proposition 51 (Civ. Code 1431.2) limits each defendant's share of noneconomic damages to its percentage of fault, but economic damages, including the property damage and medical expense dollars a carrier usually pursues, remain joint and several. A carrier can collect subrogated economic loss in full from any liable defendant, and a good faith settlement determination under Code Civ. Proc. 877.6 cuts off contribution claims against the settling defendant.
Anti-subrogation and waiver
An insurer has no right of subrogation against its own insured for a risk the policy covers (Truck Insurance Exchange v. County of Los Angeles, 95 Cal. App. 4th 13 (2002)), but the bar does not apply when the policy did not cover that insured for the loss. Waiver of subrogation clauses in commercial leases and construction contracts are generally enforced, so pull the contract before pursuing a tenant or contractor.
Practice notes
Working California subrogation files.
- 1
Split the Government Claims Act deadline by loss type. A city bus that damages an insured vehicle starts a six-month presentment clock; a burst municipal water main that floods an insured building is a real property claim with a one-year window under Gov. Code 911.2. Once the entity rejects the claim in writing, suit is due within six months, so diary the rejection date as soon as the notice arrives.
- 2
Pure comparative fault with joint economic liability produces strong recovery math. Suppose a carrier pays $85,000 for fire damage to Harbor View Dental Group's suite after a roofing contractor's torch work, and a jury puts 25% of the fault on the insured for blocked sprinklers, 60% on the roofer and 15% on an uninsured subcontractor. The carrier recovers $63,750 and can collect the full amount from the insured roofer.
- 3
For utility-caused fire losses, plead inverse condemnation alongside negligence where the facts support it (Barham v. Southern California Edison Co., 74 Cal. App. 4th 744 (1999)). City of Oroville v. Superior Court, 7 Cal. 5th 1091 (2019) requires the damage to result from an inherent risk of the public improvement as designed, built or maintained. Senate Bill 254 (2025) gives utilities the right to settle on the same terms before an insurer sells such claims to outside investors.
- 4
Protect priority under the made-whole rule. When the insured has uninsured losses, such as a deductible, contents above limits or business income, work the recovery jointly with the insured's counsel and document the allocation. Sapiano treats a carrier that sits back while the insured sues as subordinate, so a carrier that wants first-dollar recovery needs both clear policy language and active participation.
- 5
Ishqkala's SOL Tracking Engine calendars California property claims at three years and injury claims at two, and when a city, county, transit district or water agency appears in the file it opens a six-month or one-year Government Claims Act clock based on whether the damage is to personal or real property. Files with a written rejection letter get a separate six-month suit deadline.
Key cases
Li v. Yellow Cab Co.
13 Cal. 3d 804 (1975)
Replaced contributory negligence with pure comparative negligence. A subrogating carrier recovers the adverse party's percentage share even when its insured carries most of the fault.
Sapiano v. Williamsburg National Insurance Co.
28 Cal. App. 4th 533 (1994)
Applied the made-whole rule against a carrier whose policy contained only general subrogation language and that did not participate in the insured's recovery. Priority over the insured requires clear policy language and active involvement.
21st Century Insurance Co. v. Superior Court
47 Cal. 4th 511 (2009)
Attorney fees are not part of the made-whole calculation for medical payments reimbursement, but the carrier must bear a pro rata share of the fees under the common fund doctrine. Net recovery projections should deduct that share.
Inter-company arbitration
Arbitration Forums panels apply California law, so pure comparative fault drives most auto awards and a respondent may argue the negligence of an unnamed party. Signatory carriers must arbitrate company-paid damages up to $100,000 in the Automobile, Property and Medical Payment forums, and the deductible is not counted toward that limit. Large wildfire, utility and public entity claims usually fall outside compulsory arbitration because the responsible party is not a signatory or the damages exceed the limit.
How Ishqkala applies this guide
CA rules, built into every score.
- Opportunities with a California loss state are calendared against the 3 years property damage period or the 2 years bodily injury period, whichever controls the claim type.
- The insured's estimated fault share is applied under pure comparative before recoverable dollars are scored.
- Files involving a public entity get a 180-day notice deadline that outranks the general SOL in the priority queue.
- Alerts fire at 180, 90, 45 and 15 days before the controlling deadline.
Other pure comparative jurisdictions
FAQ
California subrogation FAQ
3 years (Cal. Code Civ. Proc. 338(c)(1) (injury to real or personal property)). A subrogating carrier generally takes the insured's claim subject to the same limitation period, usually measured from the date of loss.
Pure comparative (Li v. Yellow Cab Co., 13 Cal. 3d 804 (1975); Cal. Civ. Code 1431.2). California courts adopted pure comparative negligence, so the insured's fault reduces the recovery but never bars it. Under Proposition 51, noneconomic damages are several only, while economic damages stay joint and several.
Under the Government Claims Act, a claim for death, personal injury, or damage to personal property or growing crops must be presented to the public entity within 6 months after accrual; all other claims, including damage to real property, within 1 year (Cal. Gov. Code 911.2). An application to present a late claim may be made within 1 year of accrual (Gov. Code 911.4). After written rejection, suit must be filed within 6 months; if no written rejection notice is given, within 2 years of accrual (Gov. Code 945.6).
California applies the made-whole rule as a default: absent a clear contrary provision, the insurer cannot take from third-party funds until the insured is made whole for the entire loss. Sapiano v. Williamsburg National Insurance Co., 28 Cal. App. 4th 533 (1994) held that general subrogation language does not displace the rule, particularly when the carrier does not take part in the recovery. 21st Century Insurance Co. v. Superior Court, 47 Cal. 4th 511 (2009) excludes the insured's attorney fees from the made-whole calculation but requires the carrier to share those fees pro rata.
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