Moreles

Statement of the Case and Proceedings Below

In a lease dated March 5, 1985, D. Paul Fansler and Marlene M. Fansler (respondents) leased premises located in Clovis to Ramiro Morales and Rosa Morales (tenants) for a three-year term. The premises were to be used as a restaurant.

The lease required the tenants to obtain personal injury liability insurance in the minimum amount of $500,000 per injured person and $1 million per occurrence. The personal injury liability insurance actually obtained by the tenants was for only $300,000 coverage per person. The respondents were not aware that the tenants had obtained only $300,000 coverage, rather than the required $500,000 coverage.

On February 2, 1986, four-year-old Jonathan Mitchell Morales (appellant), who was having lunch at the tenants’ restaurant with his parents and siblings (appellants), wandered into the kitchen and fell or was knocked into a large pot of soup which had been set on the floor of the kitchen. Appellant was seriously burned.

Appellants received $300,000 in settlement from the tenants’ insurance carrier.

Appellants filed suit against respondents and other defendants. The complaint alleged, among other…