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GENTRY CONSTRUCTION CO., INC v. Superior Court

Citations: 212 Cal. App. 3d 177; 260 Cal. Rptr. 421; 1989 Cal. App. LEXIS 717Docket: D009603

Court: California Court of Appeal; July 18, 1989; California; State Appellate Court

Narrative Opinion Summary

In a legal dispute involving Gentry Construction Company, Inc., and R.H. Liquidating, Inc., Gentry sought indemnity from RH after homeowner Dorcus Gregory sued both entities over defective soil conditions under a strict liability claim. Gentry's cross-complaint aimed to hold RH partially or fully responsible for any liabilities it might owe to Gregory. The trial court denied RH's summary judgment motion but ruled against Gentry maintaining a strict products liability claim for total indemnity, aligning with the principle that commercial plaintiffs cannot recover under strict liability. The court emphasized that while strict liability can apply to consumer claims, in commercial contexts, parties with equal bargaining power negotiate specifications and risk allocation, precluding such liability. The doctrine of comparative indemnity, as established in American Motorcycle Assn. v. Superior Court, allows for liability apportionment among tortfeasors, including those strictly liable. The court dismissed Gentry's fifth cause of action, affirming that 'total indemnity' does not exist apart from comparative indemnity. Consequently, Gentry’s writ petition was denied, reaffirming that indemnification must be comparative and rooted in fairness, ensuring liability is apportioned based on fault.

Legal Issues Addressed

Comparative Indemnity Among Tortfeasors

Application: The court upheld the doctrine of comparative indemnity among tortfeasors, allowing for apportionment of liability based on comparative fault, rather than total indemnity.

Reasoning: The California Supreme Court in Safeway Stores, Inc. v. Nest-Kart endorsed apportionment of liability between strictly liable defendants and those liable for negligence. The rationale for this is rooted in fairness and tort policy objectives, such as encouraging safer behavior.

Dismissal of Redundant Claims

Application: The court found that Gentry's fifth cause of action was redundant because it sought a form of indemnity beyond what is recognized under existing legal standards.

Reasoning: Thus, RH’s challenge to the fifth cause of action is justified; if it seeks only comparative indemnity, it is redundant. Conversely, if it attempts to assert a claim beyond comparative indemnity, it contradicts existing legal standards.

Non-existence of Total Indemnity in California Law

Application: The court clarified that the concept of 'total indemnity' does not exist separately from comparative indemnity in California law, thus dismissing Gentry's claim for total indemnity.

Reasoning: Legal principles indicate that 'total indemnity' as a separate theory from 'comparative indemnity' does not exist in California law.

Strict Liability in Commercial Context

Application: The court concluded that a commercial plaintiff cannot recover damages under strict liability, but a commercial defendant can seek indemnity from other tortfeasors, including those liable under strict liability.

Reasoning: The court highlighted two conflicting legal principles: strict liability for defective products and equitable indemnity among tortfeasors. It concluded that while a commercial plaintiff cannot recover damages under strict liability, a commercial defendant can seek indemnity from other tortfeasors, including those liable under strict liability.