Tokio Marine & Fire Insurance v. Western Pacific Roofing Corp.

The trial court summarily named an insurer as an additional judgment debtor on the judgment in this case. Although the insurer insured a party to this action, the insurer itself was not a party and no basis appears on which it could be summarily named as a judgment debtor. We therefore reverse.

I. Factual and Procedural Background

In 1988, the Department of Water Resources contracted to have its Pearblossom Pumping Plant expanded. In 1991, as the expansion work progressed, a fire occurred, causing extensive damage. Prior to any litigation, an “Interim Funding Agreement” (IFA) was concluded among the general contractor (Torno America, Inc.), its insurer (Certain Underwriters at Lloyd’s, appellants here), the roofing contractor (Western Pacific Roofing Corporation, respondent here) and its insurer (United States Fidelity & Guaranty Co.). Pursuant to the IFA, the insurers contributed funds in order to effect prompt repairs and mitigate damages. The IFA provided that the financial contributions were subject to reallocation by binding arbitration at a later date.

A different insurer (which had insured the supplier of pumping equipment damaged in the fire) later commenced…