The firm recovered over $1.5 million on behalf of its general contractor client and its insurers against numerous subcontractors and their insurers in a subrogation matter involving a pedestrian bridge collapse. The underlying claim was settled during a pre-litigation ADR process and the firm was nominated lead trial counsel for the client and the developer’s insurance carriers in the subsequent subrogation action against the subcontractors and their insurers. In the subrogation action, one of the insurers for a subcontractor filed a motion for summary judgment regarding its duty to defend the client as an additional insured in the underlying ADR proceeding. It was the insurer’s position that it had no duty to defend the client because no complaint was ever filed in the underlying claim. Prior to the hearing on the motion, the firm reached a settlement with the insurer for $1 million plus an additional $388,000.00 (representing reimbursement of defense fees in the underlying ADR proceeding) contingent on the firm beating the insurer’s motion for summary judgment. The firm prevailed against the motion, resulting in payment of the $388,000.00 to the client and its carriers, including reimbursement of the client’s out of pocket deductible expenses.
San Diego Superior Court Case No. 37-2007-00052066-CU-CD-CTL
Counsel: David W. Smiley