City of Watsonville v. Corrigan

Opinion

ELIA, J.

This appeal arises out of a cross-action by the City of Watsonville (City) against respondents Patrick T. and Jill Corrigan and Michael Tansy, who were partners in developing and marketing residential properties in Watsonville. The trial court ruled that respondents had no duty to reimburse the City for the costs and fees it had incurred in defending the underlying action, because the City had failed to tender its defense to respondents. On appeal, the City contends that tender was not a prerequisite for reimbursement under the parties’ indemnity agreement, under statutory and…