Pacific Estates, Inc. v. Superior Court

Petitioners seek a peremptory writ of mandate to compel respondent court to reconsider its ruling denying real party in interest’s, Pacific Club Homeowners Association (PCHOA), motion for a determination a settlement was made in good faith. The trial court denied the motion out of concern over the binding effects of any such finding on nonparty, nonparticipating insurers based on the decision in Diamond Heights Homeowners Assn. v. National American Ins. Co. (1991) 227 Cal.App.3d 563 [ 277 Cal.Rptr. 906 ]. We decline to follow the Diamond Heights court’s interpretation of Code of Civil Procedure section 877.6 or the effects on nonparticipating insurers of a good faith determination under that section, and issue a peremptory writ of mandate directing respondent court to reconsider its ruling in light of this opinion.

Facts and Proceedings Below

PCHOA brought suit seeking damages for various construction defects in a condominium project. It brought suit against the project developer, Pacific Club, a limited partnership, and the three general partners of Pacific Club: J. Elliott Construction Company; Pacific Estates, which also marketed the project; and David Larson. Also…