90.2K

Verified Solution

Link Copied!

This question is from Law 001 Business Law 1

LuJu un Ui yase High Octane, Inc. maintains a warehouse full of gasoline in a crowded port of Long Beach. One night, a fire breaks out in its warehouse. The fire burns down the warehouse and spreads to Igloo, Inc.'s office next door and burns it down as well. The burglar is never caught by the police. High Octane's warehouse is worth $500,000 and the gasoline it had stored there was worth $750,000. High Octane has a $1,000,000 insurance policy to cover its losses during an accident. Igloo's office is worth $400,000, and they are forced to close for 2 months while they relocate. a. Could High Octane file a lawsuit against anyone in this case? If so, who? Under what theory of liability? b. Could Igloo file a lawsuit in this case? If so, against whom? Under what theory of liability? c. What would Igloo's damages be? d. Could High Octane make a claim under its insurance policy? e. Assume that the police later discover that the burglar was actually a cousin of High Octane's president. i. Would that fact change Igloo's theory of tort liability? ii. Would that fact give the insurance company grounds for filing a lawsuit? If so, against whom? For what type of tort? NOTE: This question is from LAW 001 Business Law

Answer & Explanation Solved by verified expert

See Answer