AmGuard Sued loanDepot Over 2024 Palm Desert Fire
The insurance firm seeks over $1.5 million in damages following an office fire allegedly caused by an unauthorized guest.
Updated on Oct. 12, 2026 in Property Crime
Live Poll
Should companies be held legally responsible for property damage caused by unauthorized after-hours guests of employees?
AmGuard Insurance Company filed a lawsuit on October 9, 2026, seeking $1,503,404.47 in damages for an April 14, 2024, fire at a Palm Desert loanDepot suite. The blaze, which also affected a neighboring restaurant, reportedly began after an unauthorized overnight guest used a butane torch inside the office.
Why it matters
The litigation highlights corporate liability regarding unauthorized access to commercial premises and building safety failures. AmGuard claims loanDepot neglected security protocols, leading to significant property destruction and loss for nearby businesses.
AmGuard Insurance Company filed the lawsuit in the US District Court for the Central District of California seeking recovery of $1,503,404.47. The status of the legal proceedings remains pending as the court processes the subrogation claim.
The players
AmGuard Insurance Company
This insurance provider is the plaintiff in the lawsuit seeking to recover costs related to the property damage claims.
loanDepot
This mortgage lender is the defendant in the case regarding an incident that occurred at their Palm Desert branch.
The details
The fire allegedly occurred after a loanDepot employee permitted an individual, hired to clean the office on April 13, 2024, to stay in the suite overnight. The incident damaged the commercial space at 73131 Country Club Drive and the adjacent Papa Dan's Pizza & Pasta.
Timeline
An employee allowed an unauthorized guest to stay in the office on April 13, 2024.
The fire broke out at the loanDepot suite on April 14, 2024.
AmGuard Insurance Company filed the federal complaint on October 9, 2026.
Legal Context
This case follows established trends in subrogation litigation where insurers seek to recover payouts from commercial entities following preventable property damage. It highlights how companies are increasingly held accountable for office security failures and the unauthorized use of commercial space.
The lawsuit underscores the importance of security protocols for businesses operating within strip malls in Palm Desert. Neighbors and local business owners may find this a reminder to ensure all nearby commercial suites maintain strict occupancy controls to mitigate fire risks.
The takeaway
Property owners and businesses should regularly audit their site access and security systems to prevent unauthorized use of office spaces. Maintaining clear records of who enters the premises can be crucial for mitigating liability in the event of unforeseen disasters.
Further reading
For more information on local legal disputes involving business properties, visit our Property Crime section.
Source note: This article includes information reported by Insurance Business.
Live Poll
Should companies be held legally responsible for property damage caused by unauthorized after-hours guests of employees?
