Housing Group v. Superior Court

Opinion

DOSSEE, J.

Background

Petitioner, The Housing Group (THG), Hugh B. Brewster Consulting Engineers, Inc., and Hugh B. Brewster (collectively Brewster) are among many defendants in a suit brought by the Homeowners Association of the Seaview Community and other named plaintiffs (collectively Homeowners). THG filed a cross-complaint

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which sought indemnity from Brewster not only for THG’s potential liability in the Homeowners action, but also for moneys paid by THG to the “Hofstrand Plaintiffs” and the “Nutt Plaintiffs” in prior lawsuits against THG and Brewster. None of the Hofstrand and Nutt plaintiffs are parties in the Homeowners action.

In an order determining that a settlement between Homeowners and Brewster was made in good faith (Code Civ. Proc., § 877.6),

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respondent superior court dismissed the cross-complaint. THG contends (1) respondent court erred procedurally when it ordered the dismissal in conjunction with the good faith hearing; and (2) in any case a good faith settlement is not a bar to a nonsettling tortfeasor’s claim for indemnity against the settling tortfeasor where, as here, the indemnity claim concerns a separate lawsuit involving different plaintiffs.

[552]

We agree, and accordingly issue our peremptory writ.

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Discussion

At the outset, petitioners argue that section 877.6, subdivision (c)

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does not authorize the superior court to dismiss claims or cross-complaints at the same time that it makes a determination concerning the good faith of a settlement. Petitioner is correct. While it is true that “section 877.6 does not provide or specify a procedure whereby the rule of discharge . . . codified by subdivision (c) may be implemented as between the tortfeasor whose settlement has been determined to be in good faith and cotortfeasors who assert indemnity claims . . . other provisions of the Code of Civil Procedure provide mechanisms by which the good faith settlor may obtain dismissal of actions or cross-complaints which come within the judicial and statutory bar. One popular and entirely appropriate method is to make a motion for summary judgment under section 437c, either contemporaneous with or following the hearing determining the good faith of the settlement. . . . Another approach is a motion for judgment on the pleadings or, if the indemnity claim is not yet at issue, a general demurrer, . . . Finally, some courts have granted simple motions to dismiss cross-complaints for indemnity immediately upon determining the cross-defendant’s settlement was in good faith.”