Last February 9, 2012 my uncle, a jeepney driver, accidentally bumped his jeep into the back of a car. The owner of the car then made a settlement with my uncle, requiring him to pay the amount of 6k and thus freeing him from any other obligation. The paper was signed by both of them. The car owner had his car insured so the 21k worth of car repair was no problem to him.
After more than two months, we received a letter from a law firm obliging us to pay the amount of 21k, telling us that the insurance company had the right of subrogation. We were able to talk to the insurance agent and we told him about the deal their insured had made with us, but he said that the amount we paid would only be deducted from the amount they had indemnified. We found out from him that their insurance company only actually paid 10k since the 11k was paid by the car owner himself. However, he was requiring us to pay the total amount of 21k, adding that it would be good if ever their insured would ask for reimbursement of his 11k (which, up to this point, he had never done).
We then discussed the matter to the car owner and he was surprised to find out that his insurer was after us, even after our settlement with him. He said he had already resolved everything with his insurer back in February, which meant that he didn't permit his insurance company to subrogate for him.
Does the insurance company still have the right of subrogation? How can we rely on the settlement we originally made with the car owner, which promised to free us from any other obligation? The insurance company is threatening to sue us if we don't pay the amount, but are we actually breaking some law pertaining to the matter?
Please give us some legal advice. Thank you very much.