The Case Of Construction Case Against A Construction Company, Pacific Trades Essay

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Statute of Limitations Tolled on Subrogation Claim Until Underlying Actions Terminated The California Court of Appeal for the fourth District recently held in Underwriters of Interest Subscriving Policy Number A15274001 v. ProBuilders Specialty Insurance Company that the statute of limitation on the insurer’s equitable subrogation claim was tolled until the underlying action came to final judgment. The case involved construction defect case against a construction company, Pacific Trades. Appellant Underwriters undertook Pacific Trades’ defense in the action under the terms of its general liability insurance policy. Appellee ProBuilders, also an insurer of Pacific Trades, denied defense on the basis that under the terms of its policy, it had no duty to defend when another insurer provided defense. The underlying case was concluded when the parties reached a settlement, in which ProBuilders agreed to pay $270,000 of $1 million. Following the conclusion of the case, Underwriters sought equitable contribution from ProBuilders for defense costs, which was denied. ProBuilders argued in its motion for summary judgment that it was excused from contributing to defense costs on the basis that the action was time-barred by the statute of limitations. Underwriters argued its action was timely because it was filed less than two years after it made its final payment towards attorney fees. The trial court agreed with ProBuilders that the clause in its policy relieving it of defense

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