Facts

In August 2008, a chiller in one of plaintiff's buildings malfunctioned, causing spoilage and contamination of a large quantity of wine. Plaintiff previously filed suit against its insurer for coverage of the loss. Following litigation with its insurer, the claim was settled. The parties executed a settlement agreement and release in March 2011, where Destiny Vineyards released the insurer, and its parents, subsidiaries, affiliated entities, divisions, successors, shareholders, officers, directors, employees, agents, representatives and attorneys from claims related to the spoilage or contamination. The insurance agent was not named in the release.

In August 2010, plaintiff brought an instant action against its insurance broker/agent, Winston & Associates, for negligence in allegedly failing to obtain the proper coverage to completely insure against its wine spoilage.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that the insurance agent was not an intended party to the release. It's principal is blind and allegedly didn't understand that the release the insurance agent, did not have it fully read to him prior to signing, and he allegedly told his attorneys that he did not want to release the insurance agent. Plaintiff also contended that the insurance broker/agent wasn't an agent of the insurer from the previous litigation.

DEFENDANT'S CONTENTIONS:
Defendant contended that introduction of evidence regarding plaintiff's intent violated the parole evidence rule. Defendant further argued that plaintiff's intent wasn't relevant because the plain meaning of the terms of the settlement agreement released it as an agent and an affiliated entity of the insurance company. Defendant also argued that those who are blind have a responsibility to have the contracts they enter read to them, and failure to do so didn't render the settlement agreement unenforceable or voidable.

Settlement Discussions

Plaintiff served a CCP 998 demand for $2 million.

Damages

Plaintiff alleged $5 million in general damages and $5 million in special damages.

Result

Summary judgment granted for defendant.

Other Information

On April 24, 2013, defendant's motion to bifurcate all aspects of litigation, to limit the scope to the special defense of the release, was granted. FILING DATE: Aug. 24, 2012.