Defendant Costco’s Motion for Judgment on the Pleadings is GRANTED WITH LEAVE TO AMEND.

Background

Plaintiff is an insurance company. On or about September 13, 2014, Plaintiff’s insureds (non-parties Sherry and Mark Young) purchased an HVAC unit at Defendant Costco Wholesale Corp. (“Costco”). The unit was sold and/or installed by Defendants Rowland Air, Inc. (“Rowland”; an independent contractor that installs HVAC units), and Rowland’s employees Robert Avalos, Jeff Hanley, Jonathon Morales, and Javier Ramirez. After the installation, a water loss occurred at the Young residence. Plaintiff paid $24,421.22 to repair the water loss damage pursuant to its policy with the Youngs and, by this action, sought to recover this amount from Defendants.

On February 1, 2017, Plaintiff and the non-Costco Defendants agreed to settle the matter as to them for $24,422.22 (one dollar higher than the damages claimed in the complaint). On February 15, 2017, Plaintiff discontinued the action against the