The validity of the $700,000 subrogation claim that James River Insurance Co. pursued against Canal Insurance Co. turned on what U.S. District Judge John J. Tharp Jr. said “has been the subject of evolving, and sometimes inconsistent, case law in Illinois” — whether a complaint for contractual subrogation has to allege the same three elements needed for equitable subrogation.Cardinal Transport was insured by Canal (under a business auto policy) and James River (with a commercial general liability policy). Both carriers …