CSAA Insurance Exchange has filed a lawsuit against America's Vinyl Exteriors, Inc., doing business as America's Dream Homeworks, for negligence and res ipsa loquitur following a devastating fire at a residential property. The complaint was lodged in the Superior Court of California, County of Sacramento, on December 16, 2024. The insurance company accuses America's Dream Homeworks of causing significant damage to the home of Mercedes and Nicholas O'Madden during a renovation project.
According to the court documents, CSAA Insurance Exchange claims that it provided homeowners' insurance coverage for the O'Maddens' residence located at 11886 Elk View Way, Rancho Cordova, California. The policy was meant to indemnify the insureds against losses such as fire damage. In August 2024, the O'Maddens contracted America's Dream Homeworks to renovate their kitchen and downstairs bathroom. On September 6, 2024, during the renovation process led by an employee named Dima Perepechkin, a fire broke out in the kitchen area. The complaint alleges that Mr. Perepechkin left oil-soaked rags in a plastic bag inside the kitchen after applying an oil-based stain to wood floor planks—a practice known to be hazardous due to self-combustion risks.
The lawsuit details how these actions led to a fire igniting in the corner of the kitchen where Mr. Perepechkin had left the combustible materials unattended. CSAA argues that all appliances were disconnected during this time due to ongoing renovations, suggesting no other source could have caused the blaze except for negligence on part of America's Dream Homeworks and its employee.
CSAA Insurance Exchange is seeking compensation for damages exceeding $532,140.68 already paid under their policy terms and anticipates further payments amounting to $150,000 or more. They argue they are entitled to recover these expenditures from America's Dream Homeworks under subrogation rights since they have compensated their insureds for real property damage and loss of use caused by this incident.
The complaint cites violations of Health and Safety Code §13007 alongside allegations of negligence—stating that America’s Dream Homeworks failed in their duty of care by not taking reasonable precautions against potential fire hazards nor adequately supervising their workers during this project.
In addition to compensatory damages according to proof presented at trial; CSAA seeks prejudgment interest at seven percent per annum starting from when payments were made towards repairing damages caused by defendant's alleged negligence.
Representing CSAA Insurance Exchange are attorneys Stephanie A. Yee and Frank M.Tse from Jang & Associates LLP while presiding over this case is yet unnamed judge(s) with Case ID: 24CV025778.