Interstate Fire & Casualty Insurance v. Cleveland Wrecking Co.
Opinion
Opinion
Needham, J.
Interstate Fire and Casualty Insurance Company (Interstate) appeals from a judgment entered after the court sustained, without leave to amend, a demurrer to Interstate’s amended complaint against Cleveland Wrecking Company (Cleveland). Interstate contends the court erred because (1) its subrogation complaint, based on its insured’s contractual indemnification claim against Cleveland, was not barred by Cleveland’s good faith settlement in the underlying litigation; and (2) Cleveland’s equities were not equal to or superior to those of Interstate as a matter of law. We agree with Interstate, and the judgment and the order sustaining the demurrer will be reversed.
I. FACTS AND PROCEDURAL HISTORY
We derive the relevant facts from the allegations of the operative pleading, Interstate’s first amended complaint.
A. The Parties and the Underlying Frisby Litigation
Webcor Construction, Inc. (Webcor), was the general contractor for a construction project in San Francisco. Cleveland Wrecking Company was a subcontractor responsible for certain demolition work. Delta Steel Erectors (Delta) was a subcontractor engaged in the installation of steel stairways.