NORCO DELIVERY SER. v. Owens Corning

75 Cal. Rptr. 2d 456, 64 Cal. App. 4th 955
CourtCalifornia Court of Appeal
DecidedJune 11, 1998
DocketG016225
StatusPublished

This text of 75 Cal. Rptr. 2d 456 (NORCO DELIVERY SER. v. Owens Corning) 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
NORCO DELIVERY SER. v. Owens Corning, 75 Cal. Rptr. 2d 456, 64 Cal. App. 4th 955 (Cal. Ct. App. 1998).

Opinion

75 Cal.Rptr.2d 456 (1998)
64 Cal.App.4th 955

NORCO DELIVERY SERVICE INC., Cross-complainant and Appellant,
v.
OWENS-CORNING FIBERGLAS, Inc., Cross-defendant and Respondent.

No. G016225.

Court of Appeal, Fourth District, Division Three.

May 21, 1998.
As Modified June 11, 1998.

*457 Ricks & Anderson, Cecil E. Ricks, Jr., and Annette L. Anderson, Costa Mesa, for Cross-complainant and Appellant.

Porter, Groff & Lodwick, Michael W. Lodwick and Stephen C. Klausen, Long Beach, for Cross-defendant and Respondent.

OPINION

CROSBY, Associate Justice.

Following a settlement between Owens-Corning Fiberglas and Seaward Properties, Ltd., the plaintiff in the underlying action, the trial court made a good faith determination and barred all cross-complaints against Owens-Corning, including that of Norco Delivery Service, under Code of Civil Procedure section 877.6. Norco challenges that good faith determination and also asserts the court, in addition to erroneously dismissing Norco's indemnity and contribution claims, improperly barred its independent, direct claims against Owens-Corning. We affirm.

I

Norco leased property in Anaheim from Seaward on which Norco had underground storage tanks to supply fuel for trucks used in its delivery business. One such tank — manufactured by Owens-Corning — was purchased by Norco in used condition in 1976. In the process of installing this tank, codefendant Wayne Perry dropped and damaged it. As a result, before Perry could complete the installation, Owens-Corning was summoned to repair the damage. It did so, and the tank was installed and in use by late 1976.

During routine pressure testing in 1986, the tank ruptured and discharged at least 2,400 gallons of diesel fuel into the contiguous subsoil. This contamination impelled remediation efforts which, in turn, imposed significant liability —approximately $300,000 worth — on the property's owner, Seaward. To recover these cleanup costs, Seaward sued Norco — whose lease agreement required it to hold Seaward harmless for liability arising from the underground storage tanks — and several other defendants, including Owens-Corning. In January 1994, after nearly five years of litigation, Seaward and Owens-Corning settled, with Owens-Corning agreeing to pay $88,000 in return for Seaward's promise to dismiss Owens-Corning.

Owens-Corning then moved for a determination under Code of Civil Procedure section 877.6 that the settlement was in good faith *458 and an order barring all claims against it concerning this underground storage tank, including Norco's cross-complaint. Over Norco's opposition, the court granted Owens-Corning's motion, finding the settlement was in the Tech-Bilt[1] ballpark and was otherwise in good faith, and dismissed Norco's cross-complaint against Owens-Corning, Norco's appeal attacks this good faith finding and also charges the court erred in dismissing its direct causes of action (rather than just its indemnity and contribution claims) against Owens-Corning.

II

We first address the procedural challenges to Norco's appeal. Owens-Corning contends (1) the appeal should be dismissed because the notice of appeal essentially seeks review of the wrong order, one that does not give rise to the issues Norco raises on appeal; and (2) Norco waived its right to appeal by accepting the "fruits" of the settlement between Seaward and Owens-Corning, the validity of which it nonetheless attacks in this appeal. We disagree with both assertions.

Concerning the first, respondent notes that on April 6, 1994, the trial court heard two motions: The first was Owens-Coming's application for a good faith determination and an order barring all existing provides no basis for dismissing the appeal, and potential claims concerning this underground storage tank; the second was Norco's motion contesting whether the settlement was in good faith.[2] The court denied Norco's motion from the bench, and its ruling was subsequently memorialized in a notice of ruling filed on April 14, 1994. The court took Owens-Coming's motion under submission, later granted it in an order filed May 1, 1994. Norco's notice of appeal refers only to this May order. However, its appellate briefs specifically challenge the trial court's denial of its motion, which occurred no later than April 14, when the notice of ruling was entered. Thus, Owens-Corning maintains, Norco improperly addresses issues on appeal unrelated to the order from which it appealed and its appeal, therefore, should be dismissed,

Respondent's reasoning is unpersuasive. It is axiomatic that notices of appeal will be liberally construed to implement the strong public policy favoring the hearing of appeals on the merits. (Department of Industrial Relations v. Nielsen Construction Co. (1996) 51 Cal.App.4th 1016, 1023-1024, 59 Cal.Rptr.2d 785.) This policy is especially vital where the faulty notice of appeal engenders no prejudice and causes no confusion concerning the scope of the appeal. (In re Marriage of Macfarlane & Lang (1992) 8 Cal.App.4th 247, 253, 10 Cal.Rptr.2d 157.) Norco's motion to contest good faith was simply the mirror image of Owens-Corning's application for a determination of good faith. Both motions raised the exact same issue: whether the settlement was in good faith, And there is no suggestion the notice of appeal created any confusion or otherwise caused any prejudice. Accordingly, the error provides no basis for dismissing the appeal, and potential claims concerning this underground

Respondent's second assertion is Norco waived its right to appeal by accepting the fruits of the settlement. That is, following the settlement, Norco and Seaward were negotiating the possible renewal of Norco's lease of the subject property. When Norco challenged the settlement on appeal, it diminished, at least to some degree, the present value of the lease. As a consequence, Seawards *459 made it a precondition to any lease renewal that Norco purchase the settlement for its full value of $88,000 and take an assignment of Seaward's rights and interests. And after taking an assignment of the settlement, Norco made a demand on Owens-Corning that it pay the amount promised in the settlement. But Owens-Corning refused to honor this demand.[3]

Relying upon several cases holding that "acceptance of the benefits of a judgment" constitutes a waiver, Owens-Corning proclaims the demand that it pay the settlement proceeds "beyond doubt ... constitutes acceptance of the benefits of the [] settlement" and is tantamount to a waiver. Case law, however, does not support this conclusion. Rather, waiver arises only where an appellant actually accepts the proceeds of a settlement or judgment, as respondent's own cases state. (See, e.g., Schubert v. Reich (1950) 36 Cal.2d 298, 299-300, 223 P.2d 242 [waiver found where appellant actually accepted respondent's payment of trial court costs]; Trollope v. Jeffries (1976) 55 Cal. App.3d 816, 822-824,128 Cal.Rptr. 115 [actual acceptance of money from escrow waived right to appeal judgment]; Levine v. Chandler (1963) 212 Cal.App.2d 250, 252-253, 27 Cal.Rptr. 831 [appellant's actual acceptance of promissory note, together with efforts to foreclose on real property, constituted waiver].)

Indeed, before any waiver will be found, there must be an unconditional, voluntary, and absolute acceptance of the fruits of judgment. (Schmidt v. Retirement Board

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75 Cal. Rptr. 2d 456, 64 Cal. App. 4th 955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norco-delivery-ser-v-owens-corning-calctapp-1998.