The Minnesota Court of Appeals ruled that an insurer may not subrogate against a man who rented a motor home from its insured. The case is Depositors Ins. Co. v. Dollansky, 905 N.W.2d 513 (Minn. Ct. App. 2017). 

Mr. Dollansky rented a motor home from Karavan Trailers. Under the terms of the rental contract, Dollansky was "responsible for all damage to the [motor home] . . . regardless of whether or not Renter is at fault" (emphasis added). During the rental period, the motor home caught fire as Dollansky was driving it, causing nearly $205,000 in damages. 

Karavan made a claim with American Family Insurance, who had issued Dollansky's auto policy, and American Family issued a partial payment but would not pay the full claim. Depositors Insurance Company, who covered Karavan, paid the full amount of the claim, then immediately sued Dollanksy for breach of contract via subrogation.