Andruss

Malcolm and Tina Andruss, dissatisfied with their purchase of a retail automotive center, sued their broker (Van Ness & Sperry, Inc., doing business as Sperry Van Ness) and the seller (Barclays Business Credit, Inc.) for fraud and rescission. Barclays filed a motion for summary judgment in which Sperry joined, and the Andrusses filed opposition. Before the motion was heard, the Andrusses and Sperry signed a written settlement agreement, with Sperry agreeing to pay the Andrusses $85,000 subject to two contingencies: (1) verification that there was no contractual indemnity provision between Barclays and Sperry, and (2) determination by the trial court that the settlement was made in good faith. (Code Civ. Proc., § 877.6.) The settlement was not contingent upon a denial of the then-pending summary judgment motion.

The indemnity contingency was quickly satisfied and Sperry set a section 877.6 motion to be heard on the same day as the summary judgment motion. Barclays filed opposition to the section 877.6 motion, the parties appeared for argument, and the trial court took both motions under submission. On February 9, 1996, the court granted the summary judgment motion…