Landlord’s Insurer Sued for Reimbursement of Property Damages

Landlord’s insurer sued for reimbursement of property damages arising out of a car being dropped through the roof of a building next door to Defendant’s business, using a forklift leased by Defendant for use in its business. Plaintiff, the landlord’s insurer, alleged Defendant had negligently failed to secure the forklift.

Plaintiff claimd $114,362 in property damage and Defendant argued, based on the terms of the lease agreement, that Plaintiff owed Defendant indemnity, resulting in the dismissal of Plaintiff’s Complaint and eventual reimbursement of Defendant’s defense fees of $13,000.

Case Name & No: Federal Insurance Company v. Novo Engineering, Inc., et al., SDSC Case No. 37-2010-00050824-CU-PO-NC

Reported by: Norman A. Ryan, Allie A. Umoff and paralegal, Janice Harlos
Settled: April 29, 2011