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Angelus Associates Corp. v. Neonex Leisure Products, Inc.

Citations: 167 Cal. App. 3d 532; 213 Cal. Rptr. 403; 1985 Cal. App. LEXIS 1960Docket: G000178

Court: California Court of Appeal; April 29, 1985; California; State Appellate Court

Narrative Opinion Summary

In a products liability case involving a motor home explosion, the court addressed the issue of whether a nonsettling defendant retailer, Angelus Associates Corporation, could pursue a cross-complaint for total equitable indemnity against the settling manufacturer, Neonex Leisure Products. The plaintiffs, injured by a defective heating unit, had settled with Neonex, which led to judgments favoring Neonex on cross-complaints. Angelus, having its trial against it and Essex, the heating unit manufacturer, sought indemnity from Neonex post-settlement but was denied. The court considered the applicability of total equitable indemnity post-american Motorcycle Assn. v. Superior Court and Code of Civil Procedure section 877.6. It emphasized that total indemnity is appropriate when a party's liability is solely vicarious, independent of comparative fault principles. The court reversed the dismissal of Angelus's indemnity claim, affirming that common law equitable indemnity remains viable under specific circumstances, particularly for vicariously liable parties. The ruling underscores the distinction between equitable indemnity and comparative indemnity, clarifying that the latter does not bar claims when no direct fault is apportioned. The decision, ultimately reversing the dismissal of Angelus's indemnity claim, permits recovery of costs on appeal, with implications for indemnity rights in similar product liability contexts.

Legal Issues Addressed

Comparative Fault and Indemnity

Application: Comparative fault principles do not apply when no wrongdoing exists to apportion between the parties.

Reasoning: Where no wrongdoing exists to apportion, comparative fault principles are inapplicable.

Effect of Good Faith Settlement

Application: A good faith settlement does not preclude claims for total equitable indemnity if the indemnitee's liability is solely vicarious.

Reasoning: Total indemnity is warranted when a party incurs liability through the actions of another without committing any wrongful act.

Equitable Indemnity in Products Liability

Application: A nonsettling defendant retailer may pursue a cross-complaint for total equitable indemnity against a settling manufacturer in a products liability case.

Reasoning: A nonsettling defendant retailer in a products liability case can pursue a cross-complaint for total equitable indemnity against the settling manufacturer, despite the latter's good faith settlement with the plaintiff.

Legal Definition of Tortfeasor in Strict Products Liability

Application: Retailers, despite being 'factually innocent,' are treated as tortfeasors under public policy in strict products liability cases.

Reasoning: The excerpt further discusses the definition of 'tortfeasor,' suggesting that retailers in strict products liability cases, despite being 'factually innocent,' are treated as tortfeasors due to public policy necessitating their liability.

Vicarious Liability in Indemnity Claims

Application: Vicarious liability allows a party to seek full indemnity, distinct from the partial indemnity allowed under comparative fault principles.

Reasoning: It was agreed that common law equitable indemnity remains valid for vicariously liable indemnitees seeking full indemnity.