Price Pfister, Inc. v. William Lyon Co.

In a bifurcated personal injury trial against two defendants, the jury rendered a verdict finding one defendant liable and the other not liable for the plaintiffs injuries. Before the jury reached a decision on damages, both defendants settled and obtained an order under Code of Civil Procedure section 877.6 finding the settlement to be in good faith, thus barring any cross-complaints for contribution or indemnity by joint tortfeasors.

We must decide whether the contribution and indemnity bars of sections 877 and 877.6 apply where a settlement is reached after the liability phase of trial but before damages have been determined.

Facts

Kristina Bretza was injured when the bathroom ceiling in her home collapsed on her. Through her guardian ad litem, she filed a complaint against William Lyon Company, the owner and developer of the housing tract, and Leaverton Brothers, the plumbing contractor. The gravamen of the complaint was that Lyon and Leaverton negligently designed, constructed, and maintained the plumbing which caused the pipes in the upstairs bathroom to leak a substantial amount of water, causing the ceiling to collapse. Price Pfister, Inc., a…