Confidential
Settlement – $350,000Court
Orange Superior
Attorneys
Plaintiff
Brian J. Ferber
(The Law Offices of Brian J. Ferber Inc.)
Defendant
Nicholas A. Cipiti
(WFBM LLP)
John A. Mayers
(Mulvaney, Barry, Beatty, Linn & Mayers LLP)
Experts
Plaintiff
William C. Crookshanks
(technical)
Gerald Zamisky
(technical)
Facts
The subject lawsuit arose out of a fire loss, which occurred on the morning of Dec. 25, 1998 at the home of John
and Grace in Huntington Beach. At the time, the homeowners were insured through a homeownerÆs policy
with plaintiff insurer. As a result of the damages sustained in the fire, the plaintiff insurer paid the homeowners
$535,613. The amount was RCV, not ACV, and included a significant amount of money paid for excessive
demolition of a hired contractor. The plaintiff insurer estimated their total ACV, including excessive
demolition, was $378,000. A cause and origin investigation conclusively established that the fireÆs origin was
at a furnace located in the attic of the home. A subsequent inspection of the furnace revealed that a hole in the
heat exchanger of the furnace allegedly allowed the fire to escape from the furnace, which ignited nearby
combustibles.
Between 1988-1989, the residence at issue was owned by Jerry and Carole. At that time,
the home underwent a major remodeling. Part of the remodeling included replacing the old
furnace with a brand new one. Jerry hired DÆs Heating and Air Conditioning for the job. Due to an
attic installation, a horizontal furnace was necessary. DÆs purchased a consolidated/premier
furnace from defendant HC and installed it at the SÆs residence on July 13, 1989. Jerry and
Carole sold the home to John and Grace in 1994. C. Industries, the manufacturer of the furnace,
had declared bankruptcy.
Settlement Discussions
The plaintiff and defendant distributor settled for $350,000. The plaintiff also recovered $32,000 from the contractor in prior settlement negotiations, making the total recovery $382,000.
Other Information
Defendants DÆs Heating and Air Conditioning (the installer of the furnace) and H. Electrical were both dismissed prior to settlement.
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