U.S. TelePacific Holdings v. Honeywell International CA6

I. BACKGROUND

A-1 Trading sued TelePacific, alleging that TelePacific’s negligent use or maintenance of the plumbing system in TelePacific’s rental unit caused a plumbing failure that damaged A-1 Trading’s adjacent unit and disrupted A-1 Trading’s business. TelePacific cross-complained against Honeywell. The original cross-complaint, prepared on Judicial Council Form PLD-PI-002, lacked case-specific factual allegations articulating the basis for TelePacific’s claims, so Honeywell secured dismissal with leave to amend with facts showing Honeywell was at fault. TelePacific filed a first amended cross-complaint—pleading causes of action for equitable indemnity, contribution, and declaratory relief—in which it incorporated by reference A-1 Trading’s complaint (without admitting the truth of A-1 Trading’s allegations). It noted A-1 Trading’s allegation “that on or about June 2, 2018[,] a failure in the plumbing system at [TelePacific’s] place of business . . . resulted in a flooding event that caused damage to A-1 Trading, Inc.’s business” (some capitalization omitted) and alleged that a Honeywell water filter failed, “caus[ing] or contribut[ing] to the flooding” alleged in A-1…