SAN FRANCISCO – An Ohio insurance company is seeking a declaratory judgment from the court over an issue with a settlement.
Scottsdale Insurance Co. filed a complaint on Feb. 19 in the U.S. District Court for the Northern District of California against Nasir Patel, individually and as trustee of the Nasir & Nasreen Patel Family Trust; Nasreen Patel, individually and as trustee of the Nasir & Nasreen Patel Family Trust; Abulala LLC; The Negev LLC; The Negev 2 LLC; Negev Properties LLC; and Danny Haber.
According to the complaint, the defendants operated a hotel on Folsom Street that was damaged by fire in May 2011, and the building remained in disrepair until October 2014. The suit states that the building was renovated but the defendants rented out units to new tenants instead of first offering them to their former tenants, which spurred a lawsuit that was settled on Feb. 2.
The suit states Scottsdale paid a settlement of $475,000, and it seeks a declaratory judgment from the court stating it had no duty to indemnity the defendants and asks for reimbursement.
It is represented by Linda Wendall Hsu, Mark E. Inbody and Rebekah Shapiro of Selman Breitman LLP in San Francisco.
U.S. District Court for the Northern District of California Case number 3:16-cv-00827-JCS