Construction material manufacturer to provide equitable indemnity for defects under state Right to Repair Act

A defendant sued for construction defects under the state's Right to Repair Act can bring a cross claim under equitable indemnity against the manufacturer of defective materials used. That's the ruling December 9 by the state Fourth District Court of Appeal in the case of Greystone Homes, Inc. v. Midtec, Inc.,(Cal.App. 4 Dist.)

A home builder was able to pursue an action against a manufacturer of plumbing fittings under the Right to Repair Act, to recover the cost of replacing allegedly faulty fittings that had not yet failed. The action was one for equitable indemnity, based on the builder's obligation to homeowners under the Right to Repair Act to the extent that any flaw in the fittings caused the homes to fall below the standards of the Act. The builder's total cost to replace all of the fittings was approximately $1,494,904, but the Court of Appeal did not resolve the issue of the manufacturer's actual liability to indemnify the builder.