206 Cal. App. 4th 1304
Cal. Ct. App.2012Background
- Oak Springs Villas is a 24-condo complex developed by Sand Canyon Properties, Oak Springs Villas, LLC, and Monteverde Development Co.
- J&J Rodgers Corporation served as general contractor; Southland Framers installed roofing trusses and related components.
- ESI/FME, Inc. provided structural engineering oversight and certified conformance with codes; HOA sued for construction defects in 2007.
- ESI settled for about $50,000 and assigned its experts to the HOA; Southland settled earlier via its insurer.
- Developer Defendants pursued indemnity cross-claims against subcontractors; the trial court found the ESI settlement in good faith and later approved the developer settlement.
- ATS appealed the trial court’s good faith determination; the appellate court dismissed ATS’s appeal as from a nonappealable order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether good faith settlement determinations are appealable | ATS argues it may appeal the good faith order as affecting its cross-claim. | Developers contend review must be by writ, not appeal, under §877.6(e). | Appeal dismissed; good faith order nonappealable; writ petition required. |
| Whether dismissal of ATS's cross-claim bars further appeal | Finality should be based on the cross-claim dismissal in context of remaining action. | Nonsettling ATS still in action; cannot appeal a good faith order as to another party. | Not permissible; final judgment rule prevents this appeal. |
| Impact of Cahill v. SDG&E on this case | Cahill supports appealing a good faith order when other parties are dismissed. | Cahill is distinguishable and here does not permit an appeal by a nonsettling party. | Declined to follow Cahill; no promise of appeal from good faith order. |
| Whether the court should treat the improper direct appeal as a writ | There may be grounds to convert to mandamus review. | No unusual circumstances justify writ treatment. | Discretion not exercised; proceed with dismissal. |
Key Cases Cited
- Main Fiber Products, Inc. v. Morgan & Franz Ins. Agency, 73 Cal.App.4th 1130 (1999) (recognizes writ as sole means to review good faith determinations under §877.6(e))
- Chernett v. Jacques, 202 Cal.App.3d 69 (1988) (timely writ review of good faith determination)
- Cahill v. San Diego Gas & Electric Co., 194 Cal.App.4th 939 (2011) (discussed whether appeal may accompany good faith determination)
- Justus v. Atchison, 19 Cal.3d 564 (1977) (final judgment concept favors prompt appellate review)
- Daon Corp. v. Place Homeowners Assn., 207 Cal.App.3d 1449 (1989) (illustrates final judgment rule when third party remains in action)
- Maryland Casualty Co. v. Andreini & Co., 81 Cal.App.4th 1413 (2000) (split on review method for good faith settlements)