Affiliated FM Ins. v. Southland HVAC & Construction CA2/1

FACTS AND PROCEEDINGS BELOW

The following facts are undisputed. La Curacao, a retailer, was a tenant of a building in Fountain Valley when a 600 square foot section of the building’s roof collapsed. At the time the roof fell in, Affiliated was La Curacao’s insurer for property damage and business interruption losses. Affiliated’s investigation following the collapse showed that a secondary drain, called a scupper, was positioned approximately four inches above the roof deck near the corner of the roof that fell. The California Building Code in effect at the time required that scuppers be placed no higher than two inches above the roof deck. Approximately four years before the accident Southland made certain repairs and renovations to the roof of the building under a contract with the building’s owner. This work included removing and replacing rooftop HVAC units and installing a new roofing “membrane” over the original flat roof. The architectural plans and scope-of-work documents for the job did not call upon Southland to make any alterations to the roof’s drainage system. After settling La Curacao’s claim, Affiliated brought this negligence action against Southland alleging in…