TSI Seismic Tenant Space, Inc. v. Superior Court

In this construction defect action the" court granted real party in interest Geocon Incorporated’s (Geocon) motion seeking a determination that its settlement with developer Serena Sunbow (Sunbow) for $50,000 was in good faith within the meaning of Code of Civil Procedure section 877.6. Although the damages plaintiff Sunbow allegedly suffered as a result'of Geocon’s negligence in performing geotechnical engineering services on the project exceeded $3.4 million, Geocon asserted its settlement was in good faith because its contract with Sunbow contained a limitation of liability clause that limited Geocon’s liability to Sunbow to $50,000. Petitioners TSI Seismic Tenant Space, Inc.- (TSI), which contracted with Sunbow to act as the general contractor on the project, and Swanson & Associates (Swanson), the structural engineer on the project, opposed the motion. They argued the settlement was .grossly disproportionate to Geocon’s proportionate share of liability* and the effect of a determination the settlement was in good faith would be to cut off their right to seek recovery for implied indemnity or contribution from Geocon, even though according to experts, Geocon was…