In Peter Cully & Associates v. Superior Court (1992) 10 Cal. App. 4th 1484, an architectural firm sued a condominium developer to collect payments owed on the project. The developer cross-complained, alleging that design flaws caused construction delays and increased costs. The developer and architectural firm settled the cross-complaint, and the architectural firm assigned to the developer its rights under an indemnity agreement with the structural engineer. The developer then brought an action to enforce the indemnity agreement against the structural engineer. The trial court entertained the developer's motion to determine whether the settlement between it and the architect was in good faith and, after so finding, determined that it was conclusive against the structural engineer. The court in Peter Culley rejected the notion that a trial judge can resolve the issues presented in a contractual indemnity case by way of a motion to determine the good faith of a settlement under Code of Civil Procedure section 877.6, and held that an indemnitee's right to contractual indemnity must be resolved by trial rather than by abbreviated proceedings. Noting that "Code of Civil Procedure section 877.6 provides a defensive procedure by which a settling joint tortfeasor or co-obligor may extricate itself from a lawsuit and bar actions for equitable indemnity by remaining joint tortfeasors or co-obligors" and that the case before it "illustrates some of the problems caused by blurring the distinction between the role of good faith in defensive section 877.6 proceedings and its role in offensive actions to enforce indemnity agreements," the Court of Appeal granted a writ directing the trial court to vacate its good faith settlement order and to conduct further proceedings. ( Peter Culley & Associates v. Superior Court, supra, 10 Cal.App.4th at pp. 1488, , 1499.) The developer in Peter Culley argued that a good faith settlement was conclusive based on language in Civil Code section 2778, which provides specific rules for the interpretation of an indemnity contract. Among other things, section 2778 provides: "4. The person indemnifying is bound, on request of the person indemnified, to defend actions or proceedings brought against the latter in respect to the matters embraced by the indemnity . . . ;5. If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the latter suffered by him in good faith, is conclusive in his favor against the former." The court concluded that "insofar as Civil Code section 2778, subdivision 5 makes a 'recovery' suffered in good faith conclusive, the statute refers only to a recovery by judgment against the indemnitee. We also conclude the indemnification for either a recovery by judgment or a settlement presupposes that other contractual conditions for indemnity, such as the indemnitor's negligence, have been proven." (Peter Culley & Associates v. Superior Court, supra, 10 Cal.App.4th at pp. 1495-1496.)