Ruling in Subrogation Suit, Interstate Fire & Cas. Ins. Co. v. Cleveland Wrecking Co.

By FindLaw Staff on February 23, 2010 | Last updated on March 21, 2019

In Interstate Fire & Cas. Ins. Co. v. Cleveland Wrecking Co., No. A124920, the California Court of Appeal for the First District dealt with plaintiff's complaint for subrogation against defendant arising from an underlying lawsuit involving an injury of a worker at the parties' construction site.

In reversing the trial court's sustaining of defendant's demurrer of the complaint, the court first determined that a good faith settlement between defendant and the injured worker does not bar plaintiff from pursuing its cause of action for express contractual indemnification against defendant. 

Next, the court analyzed each element set forth in Fireman's Fund Ins. Co. v. Maryland Cas. Co., 65 Cal.App.4th, and concluded that plaintiff's allegations established each of the elements for subrogation.

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