EXPRESSIONS AT RANCHO NIGUEL ASS'N v. Ahmanson Developments, Inc.

103 Cal. Rptr. 2d 895, 86 Cal. App. 4th 1135
CourtCalifornia Court of Appeal
DecidedFebruary 5, 2001
DocketD036419
StatusPublished
Cited by13 cases

This text of 103 Cal. Rptr. 2d 895 (EXPRESSIONS AT RANCHO NIGUEL ASS'N v. Ahmanson Developments, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EXPRESSIONS AT RANCHO NIGUEL ASS'N v. Ahmanson Developments, Inc., 103 Cal. Rptr. 2d 895, 86 Cal. App. 4th 1135 (Cal. Ct. App. 2001).

Opinion

103 Cal.Rptr.2d 895 (2001)
86 Cal.App.4th 1135

EXPRESSIONS AT RANCHO NIGUEL ASSOCIATION, Plaintiff and Respondent,
v.
AHMANSON DEVELOPMENTS, INC., Defendant, Cross-complainant and Respondent;
Monier, Inc., Cross-defendant and Appellant.

No. D036419.

Court of Appeal, Fourth District, Division One.

February 5, 2001.

*897 Gordon & Rees, William J. Peters; William A. Robles Law Offices, Robles & Castles and William Anthony Robles, San Francisco, for Cross-Defendant and Appellant.

Grady & Dicks and Michael D. Dicks, San Diego, for Plaintiff and Respondent Expressions at Rancho Niguel Association.

Green & Adams, Philip W. Green and Gary D. Grant, Irvine, for Defendant, Cross-complainant and Respondent Ahmanson Developments, Inc.

*896 McINTYRE, J.

Where a defendant who is strictly liable for a plaintiffs injury settles with the plaintiff and with various other joint tortfeasors and then pursues an equitable indemnity claim against a nonsettling joint tortfeasor, is the nonsettlor jointly and severally liable for the amount paid by the defendant to the plaintiff? In this case we answer this question in the negative, based on the conclusion that joint and several liability principles do not apply in apportioning losses from an indivisible injury among joint tortfeasors, and reverse the judgment of the trial court.

FACTUAL AND PROCEDURAL BACKGROUND

Expressions at Rancho Niguel Association (the Association), the homeowners association for a 266-unit residential project in Laguna Niguel, filed a construction defect action against the owner of the project (Ahmanson Developments, Inc.), the developer of the project (McKellar Communities/McKellar Development of La Jolla) and various others. The Association alleged a broad spectrum of defects at the project, including roof leaks resulting from inadequate flashing, membrane application and substructure. Ahmanson filed a cross-complaint for indemnity against a number of project subcontractors, including Monier, Inc., which manufactured the roof tiles used at the project.

The Association's cost of repair expert, California Building & Consulting, Inc., prepared a report estimating the total cost of repair for all of the deficiencies claimed by the Association at over $15 million, including roofing repair costs of $2,258,150. McKellar's cost of repair expert, Melhorn Construction Consulting, estimated that the total cost of repair was less than $4 million, which included $264,783 in roofing repair costs.

Ahmanson and McKellar entered into a settlement with the Association for $3,131,750, of which McKellar paid $2.45 million and Ahmanson paid $681,750, plus an assignment of proceeds of settlements Ahmanson and McKellar reached with various subcontractors. McKellar assigned its claims against the remaining subcontractors to Ahmanson and the Association (collectively, the respondents), which agreed to pursue jointly claims against the remaining subcontractors and design professionals involved in the project. In connection with the settlement, the parties allocated 10.2 percent of the settlement proceeds to roofing damages.

The respondents thereafter entered into settlements with all of the remaining project subcontractors except Monier. They received $154,577 in settlement funds from the other roofing subcontractors on the project.

The respondents' indemnity claims against Monier proceeded to a bench trial. Monier argued that the respondents were entitled to recover only that portion of the amount paid to the Association for roofing damages that were attributable to its work. The respondents, on the other hand, argued that Monier was jointly and severally liable to them for all of the roofing damages and, in accordance with Code of Civil Procedure section 877, subdivision (a), it was required to pay the full amount of the settlement proceeds allocated to *898 roofing damages, offset by payments received from the other roofing subcontractors.

The court agreed with the respondents' argument that Monier's liability for the roofing damages was joint and several. It found that $343,553 of Ahmanson's and McKellar's settlement with the Association reflected roofing damages and that Monier was liable for this amount less the $154,577 paid by the other roofing subcontractors. It thus awarded the respondents $188,976 plus costs and attorney fees. Monier appeals.

DISCUSSION

1. Introduction

A. Joint and Several Liability Principles

Under the law, a tortfeasor generally is liable for all damages proximately caused by his tortious conduct. (See Civ. Code, § 1714.) Where multiple tortfeasors are responsible for an indivisible injury suffered by the plaintiff, each tortfeasor is jointly and severally liable to the plaintiff for those damages and thus may be held individually liable to the injured plaintiff for the entirety of such damages. (American Motorcycle Assn. v. Superior Court (1978) 20 Cal.3d 578, 582, 586-587, 590, 146 Cal.Rptr. 182, 578 P.2d 899 (American Motorcycle ); DaFonte v. Up-Right, Inc. (1992) 2 Cal.4th 593, 600, 7 Cal.Rptr.2d 238, 828 P.2d 140; Wimberly v. Derby Cycle Corp. (1997) 56 Cal.App.4th 618, 633, 65 Cal.Rptr.2d 532.) Thus, the joint and several liability doctrine ensures that the injured party receives adequate compensation for its injuries, even if one or more of the responsible parties do not have the financial resources to pay for their share of the liability. (American Motorcycle, at pp. 588, 590, 146 Cal.Rptr. 182, 578 P.2d 899.) Under such circumstances, "fairness dictates that the `wronged party should not be deprived of his right to redress,' but that `[t]he wrongdoers should be left to work out between themselves any apportionment.'" (Id. at p. 590, 146 Cal.Rptr. 182, 578 P.2d 899, quoting Summers v. Tice (1948) 33 Cal.2d 80, 88, 199 P.2d 1.)

B. Equitable Indemnity

The right to indemnity flows from payment of a joint legal obligation on another's behalf. (Civ.Code, § 1432; Western Steamship Lines, Inc. v. San Pedro Peninsula Hospital (1994) 8 Cal.4th 100, 114, 32 Cal.Rptr.2d 263, 876 P.2d 1062.) The elements of a cause of action for indemnity are (1) a showing of fault on the part of the indemnitor and (2) resulting damages to the indemnitee for which the indemnitor is contractually or equitably responsible. (Gouvis Engineering v. Superior Court (1995) 37 Cal.App.4th 642, 646, 43 Cal.Rptr.2d 785.)

Equitable indemnity principles govern the allocation of loss or damages among multiple tortfeasors whose liability for the underlying injury is joint and several. (American Motorcycle, supra, 20 Cal.3d at pp. 583, 595, 597-598, 146 Cal. Rptr. 182, 578 P.2d 899; GEM Developers v. Hallcraft Homes of San Diego, Inc. (1989) Cal.App.3d 419, 426, 261 Cal. Rptr.

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103 Cal. Rptr. 2d 895, 86 Cal. App. 4th 1135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/expressions-at-rancho-niguel-assn-v-ahmanson-developments-inc-calctapp-2001.