Great American Insurance Company, et al. v. Peter Sabat dba Hydro Spa, et al.
Published: Jan. 1, 1999 | Result Date: Dec. 1, 1998 | Filing Date: Jan. 1, 1900 |Case number: PC015108Z Arbitration – $240,444
Arbitrator
Court
L.A. Superior San Fernando
Attorneys
Plaintiff
Mark S. Roth
(Cozen O'Connor)
Defendant
Experts
Plaintiff
Tim Crass
(technical)
Roy Juede
(technical)
J. Robert Nelson
(technical)
John Orzes
(technical)
Defendant
Walt Pahl
(technical)
Jaime Holmes
(technical)
Facts
On Dec. 5, 1992, a fire caused substantial property damage to a commercial building located at 8727 Tampa Avenue in Northridge. The first floor was occupied by defendant and the second floor was occupied by a law firm insured by plaintiff. An investigator from the City of Los Angeles Fire Department investigated to determine the cause and origin of the fire. He concluded that the fire originated towards the rear of defendant's occupancy, a retail redwood spa shop. That determination was based principally upon the presence of a "V" shaped burn pattern on the wall from floor to ceiling at the location. Remnants of wadded cotton rags were found in a pile on the ground in the area of fire origin. The investigator confirmed through defendant's manager that woodstaining may have been performed in the area of origin two days prior to the fire. A label from one of the cans contained a warning that the woodstain was susceptible of spontaneous combustion if not properly disposed. There were no other potential ignition sources within the area of fire origin and no evidence of an incendiary fire. The plaintiff brought this action against the defendant based on a negligence theory of recovery.
Settlement Discussions
On Dec. 23, 1997, plaintiff served a C.C.P. º998 offer of compromise for $150,000. On Dec. 30, 1997, defendant served a C.C.P. º998 offer of compromise for $30,000. Shortly before the binding arbitration, defendant increased its offer to $80,000, and plaintiff indicated it would consider settlement for $100,000.
Damages
The plaintiff had paid its insured $327,006 for damage to contents, extra expenses and lost profits.
Other Information
The award was rendered approximately three years and six months after the case was filed.
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