Arizona Pipeline Co. v. Superior Court

In Arizona Pipeline Co. v. Superior Court (1994) 22 Cal.App.4th 33, a Southern Pacific train derailed, spilling tons of toxic waste. Southern Pacific hired various entities to clean up the spillage, as did Calnev Pipe Line Company, the owner of an underground pipeline that ran along Southern Pacific's right of way. Two weeks after the derailment, the pipeline exploded. ( Arizona Pipeline Co. v. Superior Court, supra, 22 Cal.App.4th at pp. 36-37.) Several hundred lawsuits and dozens of cross-complaints for contribution and indemnity were filed but Calnev did not cross-complain against Arizona Pipeline (one of its subcontractors), and Arizona Pipeline did not cross-complain against Calnev. ( Id. at pp. 37-38.) After all the parties except Arizona Pipeline settled their claims against each other, Calnev's insurer (Somerset Marine) filed a new action against Arizona and its insurer for equitable indemnity and contribution, and Arizona then cross-complained against all the alleged tortfeasors, including Southern Pacific and the others involved in the cleanup. ( Id. at p. 38.) In Somerset Marine's action, Southern Pacific and the other tortfeasors filed motions for a determination that their settlements had been made in good faith. (Arizona Pipeline Co. v. Superior Court, supra, 22 Cal.App.4th at pp. 39-40.) Over Arizona Pipeline's opposition, the trial court found some of the settlements were made in good faith within the meaning of section 877.6, and (as to those moving parties) granted their motions. Arizona Pipeline sought writ review. ( Id. at pp. 40-41.) Division Two of the Fourth District held "that in an action where two or more persons are alleged to be joint tortfeasors, a judicial determination that a settlement between joint tortfeasors was made in good faith does not bar under section 877.6 any nonsettling joint tortfeasor from prosecuting any existing or future claims against any settling tortfeasor for comparative indemnity, because section 877.6 relates only to those settlement agreements 'entered into by the plaintiff or other claimant and one or more alleged tortfeasors or co-obligors.' ( 877.6, subd. (a).) In the context of tort litigation, the 'plaintiff or other claimant' refers to the injured party claimant, and does not include joint tortfeasors named as cross-complainants and cross-defendants in cross-complaints seeking contribution or indemnity and who also may be, as here, a designated plaintiff or complainant in the same action which was initiated as a nontort action. Where the only complainants are joint tortfeasors asserting various indemnity and contribution claims against one another, the statute does not apply. To hold otherwise would be to rewrite the statute to apply to settlements entered into not only by the tort plaintiff or other claimant and one or more alleged joint tortfeasors, but also to settlements entered into only among and between some joint tortfeasors." ( Arizona Pipeline Co. v. Superior Court, supra, 22 Cal.App.4th at p. 42.)