Valley Crest Landscape v. Mission Pools
Annotate this CaseJeffrey Epp suffered severe injuries after diving into a swimming pool at the St. Regis Resort, Monarch Beach. Epp and his wife sued the owner of the St. Regis and the entities involved in the design and construction of the swimming pool. The defendants included Valley Crest Landscape Development, Inc. (the general contractor for exterior improvements at the St. Regis), and Mission Pools of Escondido, Inc. (the subcontractor that built the swimming pool). Summary judgment motions and settlements reduced the litigation to a cross-complaint by Valley Crest and its insurer, National Union Fire Insurance Company of Pittsburgh, PA, against Mission Pools. Valley Crest sought to recover the amount it spent in the litigation based on a claim of express indemnity under the terms of the subcontract with Mission Pools. National Union sought to recover attorney fees and costs it had spent for Valley Crest’s defense and settlement of the Epps’ claims pursuant to the policy of general liability insurance that National Union had issued to Valley Crest. National Union proceeded on a claim it was equitably subrogated to Valley Crest’s claims against Mission Pools. The trial court conducted a two-part bench trial on the cross-complaint, found in favor of both Valley Crest and National Union on their respective claims, and awarded them the full amount of recovery sought. In this appeal, Mission Pools argued: (1) the cross-complaint was time-barred under Code of Civil Procedure, section 337.1, subdivision (a); (2) the trial court erred by finding National Union could recover on its claim for equitable subrogation because, under the element of balancing the equities, National Union should have borne the loss; and (3) the trial court erred by denying Mission Pools a jury trial on Valley Crest’s claim for express indemnity. As to the first contention, the Court of Appeal concluded section 337.1(a) did not apply to claims for express indemnity, and, therefore, the first amended cross-complaint was timely. As to the second contention, the Court concluded the trial court did not abuse its discretion by finding that National Union was entitled to recover based on equitable subrogation. The trial court erred, however, by denying Mission Pools a jury trial on Valley Crest’s claim for express indemnity. The Court therefore reversed on that claim and remanded for further proceedings. The Court affirmed in all other respects.
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