California Food Service Corp. v. Great American Insurance

Opinion

WIENER, J.

In practical terms, the question in this appeal is which of two insurers, defendant Great American Insurance Company or Highlands Insurance Company, should pay the $32,948 in damages caused by fire to a leased restaurant building in Santa Rosa. Before this simple question may be answered, we must determine (1) whether plaintiffs, California Food Service Corp., Inc. and John D. Challas, its principal shareholder (collectively CFS) had an insurable interest in the leased premises, (2) whether CFS’ action is properly viewed as one for equitable subrogation, and (3) if so,…