Angelus Associates Corp. v. Neonex Leisure Products, Inc.

May a nonsettling defendant retailer in a products liability action pursue a cross-complaint for total equitable indemnity against the defendant manufacturer despite the latter’s good faith settlement with the plaintiff (Code Civ. Proc., § 877.6)? Yes.

I

Larry Wilkerson and Anthony Hewitson were injured in a motor home explosion in 1977, allegedly caused by a propane gas leak in a defective heating unit. They sued numerous defendants, including the manufacturer of the vehicle, Neonex Leisure Products, Inc.; the manufacturer of the heating unit, Essex Group, Inc.; the supplier of the heating unit, Suburban Manufacturing Company; and the retailer, Angelus Associates Corporation dba Empire Camper Sales. Against Neonex and Empire, plaintiffs sought recovery on both negligence and strict products liability theories. As is typical in civil actions of this kind, all defendants cross-complained against each of the others for implied indemnity and contribution.

Six months before trial, Neonex, the motor home manufacturer, settled with both plaintiffs. The court determined the settlement was in good faith and granted summary judgment for Neonex on all the cross-complaints…