Claims against Two M&C Clients Dismissed in Subrogation Case

October 19, 2011

Tim M. Agajanian and German A. Marcucci obtained a dismissal of all claims against their clients, a developer and general contractor, and a fire sprinkler subcontractor, following their filing of a motion for summary judgment.

The developer and general contractor was hired for the construction of a high-end custom home in Calabasas, California. After construction of the home was substantially complete, the homeowner decided to have a sauna installed within the home and hired a third party for installation of the room and its respective components.

The homeowner used the sauna and, shortly after, the fire sprinkler within activated and caused water damage to the sauna room, its components, the adjacent room and property within the adjacent room.

The homeowners made a claim for the damage to their homeowners’ insurance company. The company then sought reimbursement by suing the general contractor and the fire sprinkler sub-contractor, alleging that the fire sprinkler head was not properly rated for use within a sauna. The company also sued the sauna manufacturer and installer alleging that the sauna heater was defective and/or negligently installed; cross-complaints were filed between the sued parties.

Mr. Agajanian and Mr. Marcucci compiled evidence that conclusively proved the fire sprinkler head was properly rated to be used in a sauna and, therefore, neither clients breached any duty. The insurance company refused to dismiss the case, and the M&C attorneys filed a motion for summary judgment.

Shortly before the motion was scheduled to be heard by the court, the insurance company agreed to dismiss its complaint, and the other parties agreed to dismiss their cross-complaints against M&C’s clients. As part of the agreement, the complainants stipulated and admitted that the work done “was performed competently, reasonably and within the standard and customs in the industry.”