The appellant entered into a contract with the respondent for the storage of vaccines in a temperature-controlled warehouse.
The contract required the appellant to maintain all-risk property insurance.
After the cooling system malfunctioned and destroyed the vaccines, the appellant's insurer brought a subrogated action against the respondent and other contractors involved in the warehouse's operations.
The Court of Appeal upheld the summary judgment dismissing the action, finding that the insurance covenant barred the claim against the respondent (except for a $100,000 negligence carve-out) and that the other contractors were third-party beneficiaries of this protection.
