Settlement and Contribution

Question 1

What is the effect of plaintiff’s partial settlement of a claim in cases involving multiple tortfeasors?

(NY RULE)

Answer 1

Pre-trial release of one tortfeasor in partial satisfaction (i.e., P’s partial settlement of the claim) does NOT discharge liability of other tortfeasors.

Question 2

What is the formula for reducing P’s judgment against Ds when P has already won a judgment against one of the Ds?

Answer 2

Any judgment against remaining Ds MUST be reduced by the larger of:

1. Amount of settlement, OR
2. Settling tortfeasor’s equitable share
   (e. g., Jess sues Nick and Schmidt, who cross-claim for contribution. Before trial, Jess settles with Nick for $10k. At trial against Schmidt, Jess wins a $20k verdict, where Nick was 20% at fault and Schmidt was 80% at fault. The amount of Nick’s settlement was $10k and his equitable share of the fault was $4k; so Jess’s entitlement is reduced by $10k (the larger of the two numbers), and she is therefore entitled to collect $10k from Schmidt.)

Question 3

What is the effect of settlement on indemnity and contribution? (NY RULE)

Answer 3

Settling tortfeasor cannot sue or be sued for contribution (intended to encourage settlements, because the settling party is assured that he won’t be sued for contribution)

Settling tortfeasor can sue and be sued for indemnity

Question 4

What is the NY modification for joint and several tort liability? (NY RULE)

Answer 4

((CPLR 16))

In a personal injury claim, IF

1. A tortfeasor is 50% OR LESS at fault, AND
2. P has sustained non-economic damages (Pain and suffering, Mental anguish, and Loss of consortium),

THEN tortfeasor has to pay only her own share of P’s non-economic damages

(i.e., If P has sustained $100k in non-economic damages and T was 40% at fault, T pays $40k. But if T was 51% at fault, T is jointly and severally liable for the ENTIRE judgment, i.e., both economic and non-economic damages!)

Question 5

What are the three kinds of non-economic damages in NY?

(NY RULE)

Answer 5

1. Pain and suffering
2. Mental anguish
3. Loss of consortium

Question 6

What are economic damages? (NY RULE)

Answer 6

1. Out-of-pocket monetary losses
2. Lost income
3. Medical expenses

Question 7

When does CPLR 16, the rule modifying joint and several tort liability, NOT apply? (2 times) Why?

(NY RULE)

Answer 7

CPLR 16 does not apply to claims for

1. Wrongful death OR
2. Property-damage

BECAUSE damages in such cases are limited solely to economic losses.

Question 8

What are the exclusions from CPLR 16?

(NY RULE)

Answer 8

The following tortfeasors are subject to full joint and several liability for all damages:

1. Tortfeasors who acted with intent or reckless disregard for the safety of others (IF multiple Ds, some who acted merely negligently, J&S liability applies only to the intentional tortfeasors)
2. Tortfeasors who released a hazardous substance into the environment
3. Drivers and owners of motor vehicles (other than police and fire vehicles)