Performance Plastering v. Richmond American Homes of California, Inc.

Opinion

ROBIE, J.

In this case we deal with the falling out between a homebuilder, Richmond American Homes of California, Inc., one of its subcontractors, Performance Plastering, 1 and the subcontractor’s insurer, CalFarm Insurance Company.

The problems underlying this case began when Performance Plastering was suspended as a corporation and Richmond began receiving complaints of defective construction work done by Performance Plastering on some of Richmond’s homes. In an attempt to resolve liability, Richmond and Performance Plastering entered into the so-called El Niño settlement agreements,…