Lloyd's Underwriters v. Craig & Rush, Inc.

— The single issue in this appeal is the proper interpretation of a contractual clause by which the owner of property waived certain claims for damages against its contractors. Lloyd’s Underwriters et al. (appellants), the insurers for the owner, argue the damages for which they have sued respondents (the contractors for the job) fall outside the ambit of the waiver. Respondents argue that a plain reading of the clause shows any claim for such damages was waived. The trial court concluded the waiver applied. We agree and therefore affirm the judgment.

1. Facts

The relevant facts are undisputed. Mercy Rehabilitation and Care Center (hereafter Owner) hired respondents Craig and Rush, Inc., and Westerly Mechanical, Inc. (collectively Contractors) to perform repairs to the roof of Owner’s facility (hereafter the Work). During the job, rain intruded and caused damage to the interior of the facility. Appellants, who issued property insurance to Owner, paid for the damage less the deductible owed by Owner, and then sued Contractors by way of subrogation for Contractors’ alleged negligence.

Contractors moved for and obtained summary judgment based on a clause of the…