Woodward-Gizienski & Associates v. Geotechnical Exploration, Inc.
Woodward-Gizienski & Associates v. Geotechnical Exploration, Inc.
Opinion of the Court
Opinion
This appeal from the judgment of dismissal following demurrer poses the issue of whether developers of a condominium project, sued by
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 the project’s soils engineers.
The developers settled with the homeowners for $731,400. In their memorandum of points and authorities opposing the demurrer, the developers explained that in their view even if a trier of fact concluded Geotechnical’s repairs were unreasonable, it would not likely penalize innocent, elderly homeowners who had justifiably relied on Geotechnical. Thus, rather than risking a larger judgment, the developers chose to settle, reserving their rights to proceed against Geotechnical.
The developers allege Geotechnical breached its duty of professional care and was negligent in obtaining and relying on inadequate engineering information and failing to consider and recommend less expensive alternative repair measures. They maintain the repairs recommended by Geotechnical and made by the homeowners, without notice to the developers, were not
II
Analysis
Equitable indemnification, allowing liability to be apportioned between wrongdoers based on their relative culpability, is premised on fairness. (Jaffe v. Huxley Architecture (1988) 200 Cal.App.3d 1188, 1191 [246 Cal.Rptr. 432]; American Motorcycle Assn. v. Superior Court (1978) 20 Cal.3d 578, 607-608 [146 Cal.Rptr. 182, 578 P.2d 899].) The concern of the doctrine is to avoid the obvious unfairness which results when two negligent persons cause a loss, and one is required to bear the entire burden of the loss while the other is allowed to go “scot free.” (Commercial Standard Title Co. v. Superior Court (1979) 92 Cal.App.3d 934, 939 [155 Cal.Rptr. 393].) The doctrine is not automatically available, however, for all tortfeasors who injure the same plaintiff; the courts evaluate the circumstances of the case to determine if its application is appropriate. (Munoz v. Davis (1983) 141 Cal.App.3d 420, 427 [190 Cal.Rptr. 400]; Commercial Standard Title Co. v. Superior Court, supra, 92 Cal.App.3d at pp. 941-942.)
Since indemnification between tortfeasors is an equitable tool created to correct potential injustice, we refused to apply it where a developer settled with a homeowners association for its defective workmanship and then sought indemnity from the association’s directors for negligently permitting the defects to worsen through lack of proper maintenance. (Jaffe v. Huxley Architecture, supra, 200 Cal.App.3d at p. 1192.) In Jaffe, we held equitable indemnity was not appropriate where the relief sought could have been adjudicated in the association’s action because the negligence of its directors is legally attributed to the association whose recovery from the developer would be subject to an offset for comparative negligence. (See also Holland v. Thacher (1988) 199 Cal.App.3d 924, 929-930 [245 Cal.Rptr. 247].)
In Munoz v. Davis, supra, 141 Cal.App.3d at pages 426-427, the court distinguished those subsequent tortfeasor cases in which the subsequent tortfeasor’s activity is a normal aftermath of the defendant’s conduct, from those instances where the later acts are only peripheral. There, the court rejected a lawyer’s equitable indemnification action against a negligent driver who injured the lawyer’s client. When the lawyer was sued for malprac
We recognize a prudent homeowner would seek to repair damages caused by a developer’s defective soils compaction. Where those repairs are negligently performed by third parties so as to increase the injury to the property necessitating further repairs, the relationship between the two tortfeasors is the same as between the negligent driver and the negligent doctor in Blecker v. Wolbart (1985) 167 Cal.App.3d 1195, 1201-1203 [213 Cal.Rptr. 781], and the developer would retain the right to equitable indemnification. However, that is not our case.
When we examine the particular type of loss alleged here—i.e., excessive repairs—it becomes apparent the loss cannot legally cause detriment to the developers. That is, under fundamental principles of damages law, the developers are only liable for reasonable costs of repair, and they are not liable for excessive costs of repair. Since the developers are not jointly and severally liable for the increased damages they allege homeowners incurred here, there is no basis to apportion the liability with Geotechnical.
The complaint does not allege Geotechnical negligently exacerbated the land subsidence or otherwise damaged the property so as to require more repairs. Rather, Geotechnical allegedly negligently misadvised the homeowners, causing them to make more repairs than were necessary. Thus, the facts alleged here are readily distinguishable from the cases where medical personnel cause further physical injury when treating a plaintiff, thereby allowing the defendant, who is liable for the exacerbated injury, to seek indemnity from the medical personnel. (See, e.g., Niles v. City of San Rafael (1974) 42 Cal.App.3d 230, 237-239 [116 Cal.Rptr. 733]; Blecker v. Wolbart, supra, 167 Cal.App.3d at pp. 1201-1203.)
Rather than involving exacerbated injury in the sense just described, the situation here involves the reasonableness of the cost of repairs for which the homeowners became obligated. If Geotechnical’s negligence caused the homeowners to agree to unneeded repairs, then Geotechnical injured the homeowners by causing them to expend funds beyond what was reasonably
Thus, the developers err when they assert they were “forced” to settle with the homeowners for more than the reasonable cost of repairs. Whatever may have been their concern about a trier of fact being reluctant to penalize innocent homeowners, this concern has no basis in the law. The law provides that a tortfeasor need not pay more than the reasonable cost of repairs.
In sum, if Geotechnical’s repairs were excessive, the developers were not liable for the excess. We conclude the developers could assert their claim regarding Geotechnical’s negligence in the context of challenging the reasonableness of the cost-of-repair damages, and fairness does not require resorting to the doctrine of equitable indemnity. (See Jaffe v. Huxley Architecture, supra, 200 Cal.App.3d at p. 1192; Holland v. Thacher, supra, 199 Cal.App.3d at pp. 929-930.)
We note that declining to apply the doctrine does not leave repairers free to violate standards of reasonable conduct; i.e., they owe a duty to the injured property owner to refrain from negligent conduct. Further, injured property owners have no guarantee they will be fully compensated for what they expend on repairs; thus, they have no motive to encourage excessive repairs. Absent a need for any additional checks on the conduct of repairers and recognizing that a tortfeasor can assert his claim of excessive repairs when challenging the amount of the damages, we see no policy reasons to
Similarly, we conclude neither may a cause of action be stated against Geotechnical for negligence vis-a-vis the developers.
Disposition
The judgment is affirmed.
Kremer, P. J., and Froehlich, J., concurred.
For purposes of brevity, we will refer to Coast Savings & Loan Association, Service Development Corporation, and Woodward-Clyde Consultants and Woodward-Gizienski & Associates collectively as “the developers.”
Appellant conceded as much at oral argument.
Reference
- Full Case Name
- WOODWARD-GIZIENSKI & ASSOCIATES, and v. GEOTECHNICAL EXPLORATION, INC., and
- Cited By
- 15 cases
- Status
- Published