Wins

The Regents of the University of California contracted GMSR’s client, Icon West, to modernize a residence hall; Icon West subcontracted the elevator work to an elevator company.  Years after the work was completed, one of the modernized elevators malfunctioned due to a defective component, injuring the plaintiff.  The plaintiff sued and settled with the component’s manufacturer, the Regents, Icon West, and the subcontractor.

The Regents, Icon West, and the subcontractor cross-claimed against each other for contractual indemnity.  The trial court found that none of them were negligent but also ruled that—based on the indemnity language in the parties’ contracts—Icon West had to defend and indemnify both the Regents and the subcontractor, and the subcontractor did not have to defend or indemnify the Regents or Icon West.  The result was a total judgment against Icon West of over $7.1 million.

All parties appealed, with the subcontractor’s cross-appeal limited to its claim for prejudgment interest.  Icon West argued that it did not have to defend or indemnify the Regents or the subcontractor, and the subcontractor had to defend and indemnify both Icon West and the Regents.  During the appeal, Icon West settled with the Regents and acquired from the Regents their claim against the subcontractor.  GMSR then filed an opening brief asserting the Regents’ assigned claim, arguing that the subcontract (of which the Regents were third party beneficiaries) required the subcontractor to defend and indemnify the Regents.

The Court of Appeal agreed with GMSR and held that the parties’ contracts required the subcontractor to defend and indemnify both Icon West and the Regents, and that they imposed no obligation on Icon West to defend or indemnify the subcontractor.  The Court reversed the judgment against Icon West and remanded the case back to the trial court for a determination of the judgment amount to be entered in Icon West’s favor against the subcontractor.

Click here to read the Court of Appeal’s opinion:  Truong v. Icon West, Inc. (Apr. 13, 2026, No. B327333) 2026 WL 982275 [Second District, Division Three].