Gary and Gunland-Gary v. Cal. Dept. of Transportation CA5
Opinion
Opinion
INTRODUCTION
Madco Electric, Inc. (“Madco”) worked on a construction project for Ford Construction Company, Inc. (“Ford”). Madco agreed to defend and indemnify Ford for claims arising from Madco’s operations. Years later, Ford settled a third-party suit alleging that Madco’s work had, in part, caused a wrongful death. The settlement amount and Ford’s attorney fees were paid by Ford’s insurer, Old Republic General Insurance Corporation (“Old Republic”). Ford cross-complained against Madco, alleging Madco breached its obligation to defend and indemnify Ford. Madco contended that Ford’s damages should be limited to its out-of-pocket loss (i.e., a $25,000 deductible Ford paid under its insurance policy with Old Republic). Madco argues that Ford should not be permitted to recover for other amounts, which it did not pay (i.e., the settlement amount and the defense costs above the $25,000 deductible paid by Old Republic). As a result, Madco contends the trial court erred when it awarded Ford $109,788.23 in damages. We agree and modify the judgment to award Ford $25,000. 1 We affirm the judgment as modified.