American Safety Indemnity Co. v. Admiral Ins. Co.
A real estate developer and a grading subcontractor entered into an agreement under which the subcontractor agreed to grade a hillside for construction. Pursuant to the contract, the subcontractor agreed to indemnify the developer against liability associated with the subcontractor's work. The grading performed by the subcontractor removed adjacent support from neighboring houses, causing substantial property damage. The neighbors sued the developer and the subcontractor, along with the geological consultants who planned the grading. The neighbors also sued the landowner. The defendants filed cross-complaints against one another. Thereafter the defendants reached a settlement with the plaintiffs which was found to be made in good faith. Accordingly, Court reverse the trial court's judgment.
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