Zurich American Insurance Co. alleges heating and cooling company breached obligation regarding claim

By Noddy A. Fernandez | Apr 24, 2018

SAN FRANCISCO – An insurance company alleges a company breached its obligation by failing to defend or indemnify another company regarding a claim.

SAN FRANCISCO – An insurance company alleges a company breached its obligation by failing to defend or indemnify another company regarding a claim.

Zurich American Insurance Co. filed a complaint on April 2 in the Superior Court of California - County of San Francisco against Foothill Airconditiong & Heating Inc. and Does 1-20 seeking declaratory relief and alleging breach of contract.

According to the complaint, the plaintiff alleges that defendant entered into a written subcontract agreement with Alten Construction Inc. for construction work at San Mateo High School. However, in 2016 damages were discovered at the project due to premature failure of pump and the owner demanded that the damages be repaired, the suit states. 

"Alten tendered the claim to Foothill pursuant to the subcontract. In response, Foothill failed to agree to either defend or indemnify Alten," the suit states.

The suit states Zurich issued Alten a commercial general liability policy.

"In response to a tender of the claim from Alten, Zurich agreed to resolve the claim on behalf of Alten. In so doing, and pursuant to the terms of the Zurich Policy, Zurich is subrogated to any and all claims and/or rights Alten otherwise has against others associated with the claim," the suit states.

The plaintiff seeks declaration that the defendants owe an obligation under the contract to indemnify Alten, monetary damages, attorney's fees, costs and for all the relief the court deems just and proper. It is represented by William C. Reeves of Morales Fierro & Reeves in Concord.

Superior Court of California - County of San Francisco case number CGC-18-565415

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Superior Court of California - County of San Francisco Zurich American Insurance Company

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