Associated Indemnity Co. v. Hartford Accident & Indemnity Co.
Hartford Accident & Indemnity Company, a workmen's compensation insurer for a temporary labor contractor (Greene's Temporaries, Inc.), sued Associated Indemnity Company, the insurer for a customer (Frito-Lay Company), seeking subrogation for a compensation claim paid to an injured temporary employee. Hartford contended the loss was covered by Associated's policy as the employee was under Frito-Lay's control. The court reversed the trial court's decision in favor of Hartford, denying equitable subrogation. The appellate court found that Hartford had collected premiums for the temporary employees and was charged with knowledge of the contractual arrangement, thus preventing unjust enrichment if subrogation were granted.