In settlements among multiple tortfeasors, how is a judgment against a non-settling tortfeasor adjusted?

In settlements among multiple tortfeasors, how is a judgment against a non-settling tortfeasor adjusted?

• A. Reduced by the larger of the settlement amount or the settling tortfeasor's equitable share of fault
• B. Reduced by the sum of the other tortfeasors' fault shares
• C. Not reduced; the non-settling is liable for full amount
• D. Reduced by the exact amount of the non-settling tortfeasor's fault share

Answer: (A)

When several people are at fault and the plaintiff settles with one of them, the remaining tortfeasor’s liability is adjusted by a settlement credit. That credit equals the larger of two amounts: the actual settlement paid, or the settling party’s equitable share of fault (expressed as the amount of damages that party would be responsible for). Think of it this way: the plaintiff should not recover more than what the settling party’s fault would justify, and the non-settling defendant should not be forced to pay more than his own share of fault allows. If the settlement amount is bigger than the settling party’s fault share, the larger figure—the settlement amount—drives the reduction; if the settlement is smaller, the settling party’s fault share drives the reduction. This preserves fairness among all tortfeasors and prevents over- or under-compensation. For example, if total damages are 100 and the settling party’s fault is 60% (equitable share 60), a settlement of 50 would reduce the non-settling defendant’s liability by 60 (the larger of 50 and 60), leaving 40 for the non-settling party. If instead the settlement is 70, the reduction is 70, leaving 30 for the non-settling party.

When several people are at fault and the plaintiff settles with one of them, the remaining tortfeasor’s liability is adjusted by a settlement credit. That credit equals the larger of two amounts: the actual settlement paid, or the settling party’s equitable share of fault (expressed as the amount of damages that party would be responsible for).

Think of it this way: the plaintiff should not recover more than what the settling party’s fault would justify, and the non-settling defendant should not be forced to pay more than his own share of fault allows. If the settlement amount is bigger than the settling party’s fault share, the larger figure—the settlement amount—drives the reduction; if the settlement is smaller, the settling party’s fault share drives the reduction. This preserves fairness among all tortfeasors and prevents over- or under-compensation.

For example, if total damages are 100 and the settling party’s fault is 60% (equitable share 60), a settlement of 50 would reduce the non-settling defendant’s liability by 60 (the larger of 50 and 60), leaving 40 for the non-settling party. If instead the settlement is 70, the reduction is 70, leaving 30 for the non-settling party.