Alcal Roofing & Insulation v. Superior Court

In this opinion, we consider some of the problems involved in settling multiparty construction cases and in obtaining court approval of these settlements. Alcal Roofing and Insulation (roofer hereafter), the sole nonsettling defendant in an action brought over construction defects in a condominium development, challenges superior court approval of a $4.4 million settlement by Sears Savings Bank (developer hereafter). Roofer does not object to the amount of the settlement, but to the settling parties’ allocation of only $100,000 of the settlement to roofing issues. If the court’s ruling stands, roofer is still vulnerable to damages which may reach $2 million but will receive an offset of only $100,000 from the settlement. We agree with roofer that the court erred in approving the settlement.

Crestview Park Condominium Association (Association hereafter) filed an action against developer and others alleging strict liability and other causes of action for construction defects. The complaint identified various defects in the roofs, gutters, soil, foundations, landscaping, and other parts of the 277-unit development. Developer cross-complained against the general contractor,…