Hydraulic & Air Equipment Co. v. Mobil Oil Corp.

BAKES, Chief Justice.

On April 23, 1982, a fire at the Salmon River Lumber Company in Riggins, Idaho, completely destroyed the sawmill. Lumbermens Underwriting Alliance (Lumbermens) paid the owners of the mill $6,200,-000.00 for the loss. Lumbermens then brought two separate subrogation actions in the United States district court, one against Hydraulic & Air Equipment Company (Hydraulic) and Mobil Oil Corporation (Mobil), and a second action against Grangeville Grange Supply (Grangeville) to recover the amount Lumbermens paid to Salmon River Lumber Company for the loss. The complaint alleged…