Fireman's Fund Insurance v. Morse Signal Devices

Fireman’s Fund Insurance Company (Fireman’s) appeals from a judgment of dismissal following an order sustaining, without leave to amend, the demurrers of defendants Morse Signal Devices, American Protection Industries, U.S. Burglar Alarm Company, Inc., Wackenhut Protective Systems, Alarmco, Inc., and the Western Burglar and Fire Alarm Association (hereinafter collectively referred to as Alarm Companies). The principal issues on appeal involve the subrogation claims of Fireman’s, and the enforceability of the liquidated damages provisions in the Alarm Companies’ service contracts. For reasons to follow, we have concluded that the trial court properly sustained the demurrers without leave to amend.

Procedural and Factual Summary

Fireman’s brought an action against the Alarm Companies claiming subrogation to losses arising from eleven property damage incidents sustained by Fireman’s insureds.

Fireman’s complaint alleges 30 causes of action based on breach of contract, negligence, gross negligence, or negligent misrepresentation. A 31st cause of action seeks declaratory relief to invalidate liquidated damage clauses contained in contracts between the Alarm Companies and…