Potlatch Corp. v. Superior Court

On cross-motions for summary judgment and summary adjudication of issues, the trial court determined as an issue without substantial controversy that petitioner Potlatch Corporation (Potlatch) is liable as a matter of law to Royal Insurance Company of America (Royal Insurance) for any damages for which Potlatch’s former, but now dissolved, wholly-owned subsidiary Speedspace Corporation (Speedspace) would have been liable as a result of the collapse of a building because of an allegedly defective glue-laminated roof supporting beam manufactured by a division of Speedspace. Petitioner asserts that on the facts presented the court could exercise its discretion only in one way, to deny Royal Insurance’s motion and grant its own. We issued an alternative writ of mandate to review the matter.

On or about January 30, 1979, a glue-laminated roof supporting beam manufactured by Summer Bell Structure (Summer Bell), a subdivision of Speedspace, collapsed causing extensive damage to Miller Bros. Chevrolet, an automobile dealership. Miller Bros, was insured for such damage by Royal Insurance which was required to expend large sums of money in settling claims arising from the collapse…