Sutton Rule

The Sutton Rule is named for a 1975 Oklahoma case where a tenant's 10-year-old son, while using his chemistry set, damaged a rented home owned by the Suttons. The Suttons' insurer paid for the damage and then attempted to subrogate against the tenant. The court ruled that subrogation was not permitted because the tenant, absent an express agreement to the contrary, is an implied coinsured under the landlord's policy. Part of the rationale is that the tenant pays the premium indirectly through the payment of rent.