Holdener

Appellant Ex-Cell-0 Corporation (Ex-Cell-O) appeals from a judgment dismissing its cross-complaint against respondent Brian Holdener in his personal capacity after the trial court determined Holdener had entered into a good faith settlement with plaintiff Mid-Valley Dairy Company (Mid-Valley). Ex-Cell-O contends this settlement was not made in good faith, alleging (1) Mid-Valley had an improper motive for settling its suit and (2) the settlement amount was disproportionate to Holdener’s potential liability. We find Ex-Cell-O’s position to lack merit and shall affirm the judgment.

Factual and Procedural Background

On June 20, 1981, during remodeling of Mid-Valley, a fire erupted which destroyed the dairy, with estimated damages of over $27 million to Mid-Valley.

Mid-Valley sued a number of parties, including Ex-Cell-O and the general contractor for the remodeling, the Holdener Construction Company, Inc. (HCC) of which Brian Holdener is vice-president. Ex-Cell-0 then filed a cross-complaint for indemnity against HCC and other parties. Mid-Valley and HCC subsequently entered into a settlement agreement and HCC moved to dismiss Ex-Cell-O’s cross-complaint pursuant to the…