Gilbert Financial Corp v. Steelform Contracting Co.

This is an appeal from a judgment on the pleadings (second amended complaint) in favor of defendant and respondent Steelform Contracting Company (Steelform) and against plaintiff* and appellant Gilbert Financial Corporation (Gilbert).

Gilbert entered into a construction contract with Sheldon Appel Construction Company (Appel) in 1971 to be the general contractor for a bank records storage building in El Monte, California. Appel subcontracted to Steelform the duty to furnish materials and perform the construction of the roof, roof parking deck, roof supports and accompanying structural components for the building.

The building was substantially completed by January 1972. In that month, and at various times thereafter, water from rainfall entered the building, causing damage to the contents of the building and to the building itself. During the period of January 1972 through May 1975 Appel undertook to correct the water leak problems, but was unable to do so. In June of 1975, Gilbert retained other engineers and contractors to solve the problem. These parties dismantled portions of the walls and roof of the building, and informed Gilbert that defective workmanship and…