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CONFIDENTIAL

Jul. 16, 1994

Real Property
Fire
Subrogation

Confidential

Settlement –  $12,500

Judge

Duane M. Lloyd

Court

San Bernardino Superior


Attorneys

Plaintiff

Brian M. Keith


Defendant

Steven M. Hepps


Experts

Plaintiff

Larry Schooler
(technical)

Ronald Mellott
(technical)

John N. Frye
(technical)

Defendant

William C. Crookshanks
(technical)

Facts

In May of 1990, the subject single family residence was purchased from Defendants. On November 22, 1990, in the early morning hours, a fire occurred which destroyed much of the residence. The owner suffered severe burns; his personal injury lawsuit settled in February of 1993; and Plaintiff insurance company paid $110,359 to rebuild the house and for personal items. The insurance company sought to recover those funds from the original owners through this subrogation suit. The San Bernardino County Fire Investigation determined the cause of the fire to be a combustibles ignited by the floor furnace.

Settlement Discussions

Defendant contends they offered $35,000 after arbitration (which Plaintiff rejected), reduced to $10,000 at the MSC; and Plaintiff initially demanded $110,359 reduced to $60,000 at the MSC and $35,000 at the beginning of trial.

Damages

$110,359

Other Information

A prior arbitration by Richard E. Rickler resulted in a Plaintiff award of $35,000; trial de novo by Defendants.


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