After settling a tort claim, what is the effect on the settling party's ability to sue or be sued for contribution?

After settling a tort claim, what is the effect on the settling party's ability to sue or be sued for contribution?

• A. Cannot sue or be sued for contribution
• B. Can sue for contribution but cannot be sued
• C. Cannot sue for indemnity
• D. Can sue and be sued for indemnity

Answer: (A)

When a tort claim is settled, the settling party typically receives a release that discharges them from liability to the plaintiff for that claim. Once the plaintiff’s claim is satisfied, there’s no ongoing dispute over who should bear the loss, so the mechanism to shift or share fault among tortfeasors—contribution—is extinguished. That means neither side can sue the other for contribution after the settlement, because the underlying cause of action that would support a contribution claim has been resolved. Indemnity rights, if any, depend on separate agreements or statutes, but the contribution right itself is eliminated by the settlement.

When a tort claim is settled, the settling party typically receives a release that discharges them from liability to the plaintiff for that claim. Once the plaintiff’s claim is satisfied, there’s no ongoing dispute over who should bear the loss, so the mechanism to shift or share fault among tortfeasors—contribution—is extinguished. That means neither side can sue the other for contribution after the settlement, because the underlying cause of action that would support a contribution claim has been resolved. Indemnity rights, if any, depend on separate agreements or statutes, but the contribution right itself is eliminated by the settlement.