Zurich American Ins. Co. v. County of Riverside
Plaintiff and appellant, Zurich American Insurance Company (Zurich), appeals a judgment entered in favor of defendant and respondent, County of Riverside (the County), after the trial court sustained the County’s general demurrer to Zurich’s second amended complaint against the County without leave to amend. The complaint asserts causes of action for breach of contract, interference with contractual relations, interference with prospective economic advantage, and declaratory relief.
The gravamen of Zurich’s claims is that the County wrongfully “impaired” Zurich’s subrogated right against Lim Nascimento Engineering Corp. (LAN), to collect from LAN over $377,000 in attorney fees and costs Zurich paid to defend the County in a personal injury action by John and Sarah McLauchlin (the McLauchlin action). Zurich claims the County is therefore liable to Zurich for the defense costs that Zurich is unable to collect from LAN.

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