Home Savings Ass'n v. Aetna Casualty & Surety Co.

OPINION

Facts

In 1976, H.S. Service Corporation (H.S.) constructed a 301 unit apartment complex known as the Forest Lane Apartments. While H.S. was the general contractor on the project, the actual construction work was performed by independent subcontractors, and H.S. provided only inspection services. Following completion of the building in 1977, the building was sold to Marlene Michaels, who, through a triple escrow, transferred the property to Forest Lane Associates (Forest Lane), a limited partnership. Building code violations resulted in substantial portions of the apartment complex being…