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| Case Name | Interstate Fire and Casualty Ins. Co. v Cleveland Wrecking Co. | |
|---|---|---|
| Date | 02/22/2010 | |
| Note | It is prudent to permit subrogation, so that a party with an alleged contractual indemnification obligation will be encouraged to step up in the underlying case and either fulfill the obligation (and implicitly help settle the case) or resolve any dispute over the application of the indemnification obligation. | |
| Citation | A124920 | |
| WCC Citation | WCC 36002010 CA |
Ct. No. 475134) Interstate Fire and Casualty Insurance Company (Interstate) appeals from a judgment entered after the court sustained, without leave to amend, a demurrer to Interstate's amended complaint against Cleveland Wrecking Company (Cleveland). Cleveland Wrecking Company (Cleveland) was a subcontractor responsible for certain demolition work. The good faith settlement does not bar Interstate from pursuing its cause of action for express contractual indemnification against Cleveland. Cleveland contends Webcor did not actually suffer any loss, because Interstate paid the costs of defending against and settling Frisby's claims. Cleveland urges that Webcor does not have an existing cause of action against Cleveland because Webcor has already been fully compensated by Interstate.
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