Why can't Sam sue Nicole for the full amount of his injuries after being paid by his insurer?

When Sam accepted payment from his insurer, he effectively engaged in a process called subrogation, which affects his ability to pursue further compensation. Subrogation allows the insurer to step into the shoes of the insured after paying a claim. This means that the insurer now has the right to seek reimbursement from the party responsible for the damages, in this case, Nicole. Consequently, Sam cannot sue Nicole for the full amount of his injuries because he has already accepted compensation, which represents a settlement of his claim against her.

Subrogation is an important principle in insurance that prevents the insured from profiting from both the insurance claim and a potential lawsuit against the at-fault party. It promotes fairness and ensures that the insured does not receive double compensation for the same loss. Therefore, since Sam has received payment from his insurer, he cannot pursue the full amount directly from Nicole as it would undermine the intention of the insurance arrangement and potentially lead to unjust enrichment.