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CONFIDENTIAL

Jan. 18, 1997

Insurance
Construction Negligence

Confidential

Settlement –  $120,000

Judge

J. Michael Gunn

Court

San Bernardino Superior


Attorneys

Plaintiff

Mark S. Roth
(Cozen O'Connor)


Defendant

Michael B. Lawler


Facts

In 1993, the plantiff's insured was the general contractor during the construction of an elementary school in Rancho Cucamonga. The defendant subcontracted with the plaintiff's insured to perform the roofing work at that school. That roofing work included installation of the parapet wall caps, gutters and a metal roof. On Jan. 25, 1993, winds from severe rainstorms blew off the base sheet 30-pound felt roof cover. As a result, substantial rainwater was permitted to enter through the parapet walls, which the defendant had not yet capped. Prior to the loss, the plantiff's insured had repeatedly placed the defendant on notice of the need to perform its work in a timely manner so as to avoid the onset of the rainy season. Those requests were allegedly ignored. The plaintiff insurer brought this action against the subcontractor based on negligence and breach of an express indemnity agreement.

Settlement Discussions

The settlement discussions were not disclosed.

Damages

The plaintiff alleged it paid a total of $268,000 to its insured under a builder's risk policy.

Other Information

The settlement was reached approximately eleven months after the case was filed. A settlement conference was held on Nov. 18, 1996 before J. Michael Gunn of San Bernardino Superior Court resulting in the reported settlement.


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