Fireman's Fund Insurance v. Wilshire Film Ventures, Inc.

Wilshire Film Ventures, Inc., leased camera equipment from Leonetti Company under a lease that obligated Wilshire to return the equipment by a specified date or pay its full value. Wilshire stored the equipment in its own truck and, with Leonetti’s permission, parked the truck in Leonetti’s locked storage yard. Through no fault of Wilshire, burglars broke into the van and stole the equipment. When Wilshire refused to pay Leonetti for the stolen equipment, Leonetti submitted a claim to its insurer, Fireman’s Fund Insurance Company. Fireman’s Fund paid the claim, then sued Wilshire for equitable subrogation, claiming Wilshire had breached its contract with Leonetti and that Fireman’s Fund, having paid Wilshire’s obligation, now stood in Leonetti’s shoes and could recover from Wilshire. A jury agreed with Fireman’s Fund and awarded it $69,902.63. Wilshire appeals. We affirm.

Discussion

Wilshire contends Fireman’s Fund was not entitled to pursue a claim for equitable subrogation. We disagree.

When an insurer seeks equitable subrogation after it has paid a claim for an insured, the insurer must establish that (1) the insured suffered a loss for which the defendant is…