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Torts keyed to Robertson
Royal Indemnity Co. v. Factory Mutual Insurance Co.
Citation:Supreme Court of Iowa, 2010. 786 N.W.2d 839.
Deere & Company, a farm equipment manufacturer, was considering leasing a warehouse as a place to store its product. Deere entered into an agreement with the Defendant, Factory Mutual Insurance Co., where the Defendant undertook conducting a fire-safety inspection of the warehouse. Following the inspection, Deere leased the warehouse and moved its product into it. Two months after moving into the warehouse, a fire destroyed it along with Deere’s product inside. Evidence gave no cause for the fire. However, the fire chief testified that the fire would have been quickly extinguished by the fire department’s fire hoses had there been sufficient water pressure.
The agreement between the Defendant and Deere did not impose any responsibility on the Defendant to look into the adequacy of the water pressure at the warehouse. The Defendant was supposed to look into to the warehouse’s sprinkler system and didn’t. The sprinklers turned out to be in poor condition.
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