KAOM, INC. v. Superior Court

This construction defect case presents the following issue: is a cross-defendant who settles with a cross-complainant, but not the plaintiff, entitled to a determination under Code of Civil Procedure section 877.6 that the settlement was in good faith? Yes.

I

The operative facts are undisputed. Villa Mira Homeowners Association owns a 212-unit condominium complex in Laguna Niguel. Between September 1985 and June 1988, the association noticed the second-story decking leaked water on underlying units and garages; there were numerous fissures throughout the concrete foundations and sidewalks; and the stairwells connecting the first and second stories were improperly built. As a result of these problems, the association filed the underlying action against the developer for strict liability, breach of implied warranties, and negligence.

The developer cross-complained for express and implied indemnity, contribution, and breach of contract against numerous subcontractors, including Thornton Steel, which installed the stairs and did the steel stringer construction, Lone Star Framing & Lumber, which supplied the lumber and did the framing, KAOM, Inc., which did the sheet metal…