Gray•Duffy, LLP negotiates full dismissal in fire subrogation case.

January 2017

Overview

Richard M. Williams of Gray•Duffy’s Redwood City office represented Lawrence Road Apartments in Santa Clara, CA in a fire subrogation matter brought by Allstate Insurance Company.

Discussion

Allstate v. Lawrence Road Apartments

On October 9, 2015, a fire occurred in the Lawrence Road Apartment complex located at 3555 Warburton Avenue in Santa Clara. Unit 243, inhabited by Allstate’s insured, was substantially damaged. Allstate paid for damage to the tenants’ possessions and then filed a lawsuit against Lawrence Road Apartments based upon its employees’ alleged negligence in the installation of a gas stove.

Gray•Duffy denied the subrogation claim and raised as a defense the waiver of subrogation clause contained in the lease between Allstate’s insured/tenant and the apartment complex which stated that the lessee’s insurance shall be primary and that “neither the lessor nor the property manager shall be subject to subrogation claims under the renter’s insurance policy.”

After protracted negotiation, Allstate filed a dismissal of the action against Gray•Duffy’s client.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.