Fireman's Fund Insurance v. Sizzler USA Real Property, Inc.

Plaintiff, Fireman’s Fund Insurance Company, appeals from a judgment in favor of defendant, Sizzler USA Real Property, Inc., following a court trial of plaintiff’s complaint for subrogation, by which plaintiff sought to recover amounts it paid to indemnify its insured, Santa Monica Collection LLP (SMC), in a premises liability case. The ultimate question presented is whether a subrogation waiver in the leases between SMC and defendant barred plaintiff’s claim. The trial court held that it did. We agree, and affirm the judgment.

FACTS

SMC owns a shopping center located at Fairfax Avenue and Santa Monica Boulevard in West Hollywood. Defendant is a tenant of space in the center, entitled also to nonexclusive use of its parking area. Defendant and SMC are successor parties to two effectively identical leases (covering adjacent units), originally entered into between the organizers of SMC and a related Sizzler corporation, which prepared the leases.

The leases each contain the following provisions regarding liability. Under paragraph 17, “LIABILITY INSURANCE,” defendant as tenant is obligated to maintain liability insurance, for claims against it for bodily injury and…