WOODWARD-GIZIENSKI v. Geotechnical Exploration

208 Cal.App.3d 64 (1989) 255 Cal. Rptr. 800 WOODWARD-GIZIENSKI & ASSOCIATES et al., Plaintiffs and Appellants,

v.

GEOTECHNICAL EXPLORATION, INC., et al., Defendants and Respondents.

Docket No. D006799. Court of Appeals of California, Fourth District, Division One.

February 27, 1989. [65] COUNSEL

McInnis, Fitzgerald, Rees, Sharkey & McIntyre, James E. Chodzko, James J. Reynolds, Gilson & Heaton and Virginia R. Gilson for Plaintiffs and Appellants.

Asaro & Keagy, Richard R. Freeland and Arnold Neves, Jr., for Defendants and Respondents.

OPINION

WORK, J.

This appeal from the judgment of dismissal following demurrer poses the issue of whether developers of a condominium project, sued by [66] homeowners, can state an equitable indemnity and negligence cause of action against forensic soils engineers who allegedly caused homeowners to make excessive repairs to their subsidence-damaged property. We conclude that since as a matter of law the developers' liability is limited to the reasonable cost of repairing damage caused by their negligence, the developers' complaint does not state a viable cause of action. We affirm.

I

FACTUAL AND PROCEDURAL BACKGROUND

The developers' complaint for full or partial equitable indemnity and negligence against the soils engineers hired by the homeowners alleges Costa Viva Homeowners Association (homeowners) sued Coast Savings & Loan Association and Service Development Corporation, developers of the homeowners' condominium project, for damages arising from the settlement of certain balconies, buildings and pools. Coast Savings & Loan Association and Service Development Corporation cross-complained against Woodward-Clyde Consultants and Woodward-Gizienski & Associates for indemnification as the project's soils engineers.[1] The homeowners retained Geotechnical Exploration, Inc. (Geotechnical), a firm of soils engineers, to investigate and make recommendations to cure the defects and repair the damage. Geotechnical's recommendations included removing and replacing one swimming pool and constructing massive concrete and steel piers at 75 locations within the project. Relying on these recommendations, the homeowners implemented the repairs at a cost of about $1 million.