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Arizona Pipeline Co. v. Superior Court1/28/1994
In this proceeding we decide that in an action originated by a complaint for declaratory relief, settlements among some alleged joint tortfeasors as cross-defendants in cross-complaints in that action for implied equitable comparative indemnity and contribution, but not involving any of the tort plaintiffs in separate actions are not subject to a good faith determination under Code of Civil Procedure section 877.6 because there has been no showing that these settlements will ultimately result in the equitable sharing of costs among all the joint tortfeasor parties at fault for the tort plaintiffs' injuries and property damage.
We, therefore, conclude that the trial court erred in granting the motions of real parties in interest determining the settlements to be in good faith pursuant to section 877.6, dismissing all cross-complaints against the real parties, except Calnev, and barring all current and future actions against them, except Calnev, for equitable comparative contribution, or partial or comparative indemnity. Accordingly, we will grant the petition and direct the superior court to set aside its orders granting these motions, and dismissing and barring certain cross-complaints, and to enter a new order denying them.
I. INTRODUCTION
The instant action is but one of a number of lawsuits that have arisen in the aftermath of the twin calamities that occurred in the Duffy Street neighborhood of San Bernardino in May 1989: the derailment of a Southern Pacific Transportation Company (Southern Pacific) train on May 12, 1989, followed less than two weeks later by the explosion in an underground pipeline carrying petroleum products.
As a result of the train derailment several tons of trona spilled from the train into the area. The trona was being shipped on the train by Lake Minerals Corporation (Lake Minerals). Southern Pacific contracted with
various parties to perform services in the effort to clean up the spillage from the train. IT Corporation (IT), a toxic cleanup firm, was hired by Southern Pacific to clean up the trona as well as spilled diesel fuel. James Dickey Inc. (JIMCO) was hired by IT to operate heavy equipment in this cleanup operation.
Pursuant to a licensing agreement, Calnev Pipe Line Company (Calnev) owned and operated the subject pipeline on Southern Pacific's right-of-way. Following the derailment, Calnev attempted to withdraw the petroleum product from the pipeline and reduce pressure in the derailment area and to inspect the pipeline. It retained Arizona Pipeline Company (Arizona) to assist it in these operations. Calnev claims that Arizona failed to conduct an adequate inspection of the pipeline and certain check valves after the derailment, and may have damaged the pipeline in the course of its postderailment excavations.
II. FACTUAL AND PROCEDURAL BACKGROUND
A. LAWSUITS.
Several hundred persons have filed actions claiming personal injury and property damages allegedly caused by the derailment and/or pipeline explosion. One lawsuit alone, Aguilar, et al. v. Calnev, et al., No 261126, involves three hundred seventy-five plaintiffs claiming such injuries.
The underlying complaint in this action, No. 251310, was brought by Southern Pacific against Calnev in which it seeks a declaration of rights under their licensing agreement, and particularly that under the indemnification provision of the agreement Calnev was obligated to indemnify Southern Pacific for all claims and liabilities arising out of the pipeline explosion. This complaint engendered numerous cross-complaints among additional parties as joint tortfe
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