AIDAN MING-HO LEUNG, a Minor, etc., Plaintiff and Appellant, v. VERDUGO HILLS HOSPITAL, Defendant and Appellant., 55 Cal. 4th 291

Summary

The complaint alleged permanent injury resulting from failure to timely diagnose and treat an infant. The trial court ruled that a pretrial settlement with the pediatrician was not made in good faith. The hospital did not settle. A jury found both the pediatrician and the hospital negligent. The court held that the common law release rule was no longer to be followed in California, in light of its harsh results. Absent good faith under Code Civ. Proc., §§ 877, 877.6, subd. (c), the apportionment method of setoff without contribution was not available. The alternative approach of setoff with contribution was appropriate. Accordingly, when a tort settlement was not made in good faith, nonsettling defendants remained jointly and severally liable, the amount paid in settlement was credited against any damages awarded against the nonsettling defendants, and the nonsettling defendants were entitled to contribution from the settling defendant for amounts paid in excess of their equitable ...