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Court of Appeal Holds That Home Builders May Pursue Claims for Equitable Indemnity for Purely Economic Losses Under Right to Repair Act

California Construction & Business Law Update

On December 2, 2008, the Fourth District Court of Appeal decided Greystone Homes, Inc. v. Midtec, Inc., et al. In a case of first impression, the court ruled that home builder may pursue claims for equitable indemnity against individual product manufacturers for purely economic losses where the losses would be recoverable by a homeowner under the Right to Repair Act (California Civil Code § 895, et seq.), also known as SB 800.