Woodward-Gizienski & Associates v. Geotechnical Exploration, Inc.

This appeal from the judgment of dismissal following demurrer poses the issue of whether developers of a condominium project, sued by *66 homeowners, can state an equitable indemnity and negligence cause of action against forensic soils engineers who allegedly caused homeowners to make excessive repairs to their subsidence-damaged property. We conclude that since as a matter of law the developers’ liability is limited to the reasonable cost of repairing damage caused by their negligence, the developers’ complaint does not state a viable cause of action. We affirm.

I

Factual and Procedural Background

The developers’ complaint for full or partial equitable indemnity and negligence against the soils engineers hired by the homeowners alleges Cos-ta Viva Homeowners Association (homeowners) sued Coast Savings & Loan Association and Service Development Corporation, developers of the homeowners’ condominium project, for damages arising from the settlement of certain balconies, buildings and pools. Coast Savings & Loan Association and Service Development Corporation cross-complained against Woodward-Clyde Consultants and Woodward-Gizienski & Associates for indemnification as…