C. L. Peck Contractors v. Superior Court
Citation | 205 Cal.Rptr. 754,159 Cal.App.3d 828 |
Court | California Court of Appeals |
Decision Date | 29 August 1984 |
Parties | C.L. PECK CONTRACTORS and Century 98 Associates, Petitioners, v. SUPERIOR COURT of the State of California for the County of Los Angeles, Respondent. PIERCE ENGINEERING COMPANY, Real Party in Interest. Civ. B 005096. |
David L. Winter, Hagenbaugh & Murphy, Los Angeles, for petitioners.
No appearance for respondent.
Stephen L. Thomas, Jay J. Elliott, Thomas & Elliott, Los Angeles, for real party in interest.
In this case we decide that a good faith settlement between a plaintiff and a defendant under Code of Civil Procedure section 877.6 does not bar the remaining co-defendants from seeking indemnity from the settling defendant based on an express contract.
On July 17, 1980, Joseph Ventura was injured while working at a construction site. He sued C.L. Peck Contractors, the general contractor; Century 98 Associates, the owner (Petitioners); and Pierce Engineering Co. (Real Party in Interest), a subcontractor.
Mr. Ventura settled his claim against Pierce. Pursuant to Code of Civil Procedure section 877.6, Pierce sought from the trial court a declaration that the settlement was in good faith, and a dismissal of all cross-claims for indemnification. Petitioners opposed dismissal of their cross-claim to the extent the claims were provided for by contract with Pierce. 1 The court granted Pierce's motion, reasoning that an 877.6 settlement extinguishes all claims for indemnity, even those provided for by contract. Petitioners filed their petition for a writ of mandate with this court. We issued the alternative writ to definitively settle this important question.
The California Supreme Court in Li v. Yellow Cab Co. (1975) 13 Cal.3d 804, 119 Cal.Rptr. 858, 532 P.2d 1226 announced the rule of comparative negligence in California. American Motorcycle Assn. v. Superior Court (1978) 20 Cal.3d 578, 146 Cal.Rptr. 182, 578 P.2d 899 extended the new rule to multiple defendants, and we were taught that equitable indemnity was not to be an all or nothing affair, but would also be based on comparative negligence. The court stated: "[W]e conclude ... that a tortfeasor who has entered into a 'good faith' settlement [citation] with the plaintiffs must also be discharged from any claim for partial or comparative indemnity that may be pressed by a concurrent tortfeasor." (Id., at p. 604, 146 Cal.Rptr. 182, 578 P.2d 899.) Code of Civil Procedure section 877.6, enacted in 1980, is the legislative incarnation of this pronouncement. (Turcon Construction Inc. v. Norton-Villiers, Ltd. (1983) 139 Cal.App.3d 280, 283, 188 Cal.Rptr. 580.) It states in pertinent part:
Whether Code of Civil Procedure section 877.6 bars claims of indemnity grounded in contract has not yet been squarely faced and answered, but it is not new. It was raised in Kohn v. Superior Court (1983) 142 Cal.App.3d 323, 191 Cal.Rptr. 78. The court there did not decide the issue, finding that it was not properly presented for decision. Several cases in dicta have assumed, without deciding, that contractually assumed liability is unaffected by section 877.6. In Pappert v. San Diego Gas & Electric Co. (1982) 137 Cal.App.3d 205, 186 Cal.Rptr. 847, the court's factual summary included this statement: "When pre-trial settlement resulted in a dismissal of plaintiff's complaint against Asplundh, SDG & E's cross complaint against Asplundh was dismissed as to the equitable indemnity action, leaving only its claim for express contractual indemnity." (Id. at p. 208-209, 186 Cal.Rptr. 847; emphasis added.)
In the case of Turcon Construction, Inc. v. Norton-Villiers, Ltd., supra, 139 Cal.App.3d at p. 284, 188 Cal.Rptr. 580, this Division noted:
In City of Sacramento v. Gemsch Investment Co. (1981) 115 Cal.App.3d 869, 171 Cal.Rptr. 764, the court stated: "Where the transaction rests upon related facts, either concurrent or successive, joint or several, which legally created detriment compensable against multiple actors, the right of indemnity should follow AMA guidelines, unless the contract or statute otherwise provides." (Id. at p. 877, 171 Cal.Rptr. 764; emphasis added.)
In Rodriguez v. McDonnell Douglas Corp. (1978) 87 Cal.App.3d 626, 151 Cal.Rptr. 399 the court points out: "None of the discussion in American Motorcycle leads to the slightest suggestion that the court was addressing itself to the all or nothing right of indemnification that is created by the parties to an indemnity contract." (Id., at p. 676, 151 Cal.Rptr. 399.)
Finally, this court in County of Los Angeles v. Superior Court (1984) 155 Cal.App.3d 798, 202 Cal.Rptr. 444, stated: "[T]hose sections [Code Civ.Proc., §§ 877 and 877.6] do not operate to bar otherwise valid claims by express or implied indemnity arising out of a contractual relationship." (Id. at p. 803, 202 Cal.Rptr. 444.) This statement has the character of an alternate holding; as we declared, the decision actually depends on the conclusion that "[t]hose sections apply only to joint tortfeasors and in our opinion County's role is not that of a tortfeasor." (Id.)
We recognize that Code of Civil Procedure section 877 presents a problem. Subdivision (b) of that section provides that settlement "shall discharge the tortfeasor to whom it is given from all liability for any contribution to any other tortfeasors." (Emphasis added.) This language does not fit comfortably with that of section 877.6, and suggests the result urged by Pierce. Section 877 was enacted in 1957, well before the introduction of comparative negligence into California jurisprudence. It has not been amended since then. We believe that the Legislature, when it enacted section 877.6, simply neglected to amend 877 to conform to the new rule of comparative negligence. We therefore resolve the ambiguity by holding that the more general language of section 877, subdivision (b) is subordinated to section 877.6, subdivision (c), the more recent and more specific expression of the legislative will.
We are mindful of the differences between indemnity based on contract and indemnity based on equitable considerations. ...
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