Obligations and Contracts – Subrogation
Art. 1826. Effects.
A. When subrogation results from a person’s performance of the obligation of another, that obligation subsists in favor of the person who performed it who may avail himself of the action and security of the original obligee against the obligor, but is extinguished for the original obligee. B. An original obligee who has been paid only in part may exercise his right for the balance of the debt in preference to the new obligee. This right shall not be waived or altered if the original obligation arose from injuries sustained or loss occasioned by the original obligee as a result of the negligence or intentional conduct of the original obligor.
Art. 1827. Conventional subrogation by the obligee. An obligee who receives performance from a third person may subrogate that person to the rights of the obligee, even without the obligor’s consent. That subÂrogation is subject to the rules governing the assignment of rights.
Art. 1828. Conventional subrogation by the obligor. An obligor who pays a debt with money or other fungible things borrowed for that purpose may subrogate the lender to the rights of the obligee, even without the obligee’s consent.
Art. 1829. Subrogation by operation of law. Subrogation takes place by operation of law:
(1) In favor of an obligee who pays another obligee whose right is preferred to his because of a privilege, pledge, mortgage, or security interest;
(2) In favor of a purchaser of movable or immovable property who uses the purchase money to pay creditors holding any privilege, pledge, mortgage, or security interest on the property;
(3) In favor of an obligor who pays a debt he owes with others or for others and who h s recourse against those others as a result of the payment;
(4) In favor of a successor who pays estate debts with his own funds; and
(5) In the other cases provided by law. Art. 1830. Effects of legal subrogation. When subrogation takes place by operation of law, the new obligee may recover from the obligor only to the extent of the performance rendered to the original obligee. The new obligee may not recover more by invoking conventional subÂrogation.
Art. 1830. Effects of legal subrogation. When subrogation takes place by operation of law, the new obligee may recover from the obligor only to the extent of the performance rendered to the original obligee. The new obligee may not recover more by invoking conventional subrogation.
