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Settlement – $375,000Facts
On Nov. 15, 1994, the subject residence caught on fire allegedly because of the improper operation of an appliance. Approximately one week before the fire, the owners of the residence requested that defendant No. 1 service an appliance. Defendant No. 1 was unable to immediately perform that service. The residents then contacted another entity, defendant No. 2, to perform that service. On Nov. 7, 1994, defendant No. 2 serviced the appliance. On Nov. 14, 1994, a serviceman employed by the defendant No. 1 also serviced the appliance. The fire originated at the appliance approximately 36 hours later, at which time it was discovered that the automatic shutoff devices had been bypassed. As a result, the residents were prevented from shutting off the appliance. The plaintiff insurer brought this subrogation action against both defendants due to negligent servicing.
Settlement Discussions
The plaintiff dismissed one defendant for a waiver of costs and settled with the other. That defendant initially made a settlement offer of $125,000. The plaintiff made an initial settlement demand of $575,000.
Damages
The plaintiff insurer paid its insureds a total of $713,889.51 for damage to the residence, contents and additional living expenses. The plaintiff claimed that recoverable damages after application of depreciation were approximately $600,000 plus interest of approximately $100,000.
Other Information
The settlement was reached approximately one year and eight months after the case was filed. A settlement conference was held on Nov. 20, 1996 before Judge Coleman Stuart. It did not resolve the matter.
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