Why can Matt NOT sue Zach after receiving indemnification from the insurer?

The reason Matt cannot sue Zach after receiving indemnification from the insurer is that indemnification typically resolves the financial obligation owed to Matt by the insurer for the loss he incurred. When an insurer indemnifies an insured, it essentially compensates them for their loss, thereby taking on any legal rights the insured may have had against the parties responsible for the loss. This means that Matt has already received full compensation for his damages, and therefore, any further legal action against Zach would be unnecessary since the primary purpose of seeking damages—rehabilitating his financial position—has already been met.

The concept of indemnification implies that the injured party is made whole again, and pursuing further legal action would not be viable since it would fundamentally undermine the agreement with the insurer. As a result, the indemnification effectively bars Matt from initiating a lawsuit against Zach for the same incident, as he has no remaining damages to claim.