prod.liab.rep.(cch)p 11,867 Hydro-Air Equipment, Inc. v. Hyatt Corporation, a Delaware Corporation

Hydro-Air Equipment, Inc. appeals the Nevada district court’s summary judgment in favor of Hyatt Corporation. Hydro-Air sought a declaratory judgment from the district court, contending that it was entitled to indemnification from Hyatt for settlement costs it paid in the “Ampico action,” a lawsuit that followed the 1980 MGM Grand Hotel fire in Las Vegas. The district court held that Hydro-Air’s request for implied equitable indemnity could not be maintained as a matter of law because Hydro-Air did not stand in the relationship of joint tortfeasor with Hyatt. We reverse the court’s summary judgment and remand for further proceedings.

FACTUAL BACKGROUND

After the devastating 1980 fire at the MGM Grand Hotel, the hotel’s insurer, American Protection Insurance Company (“Ampico”), paid approximately $141 million dollars to compensate the hotel for property damage and lost profits. Ampico then sued Hydro-Air and numerous other manufacturers and suppliers, claiming that they caused or contributed to the hotel’s property damage. Ampico alleged that Hydro-Air had manufactured and supplied the hotel’s guest rooms with ventilation units that drew smoke and fumes from the corridors to the…