Motion for Determination of Good Faith Settlement (CA)

by Practical Law Litigation

A Practice Note explaining the process for a settling party in a case involving multiple joint tortfeasors or co-obligors on a contract debt to seek a court determination under California Code of Civil Procedure Section 877.6 that the settlement is in good faith. This Note discusses which settlements are eligible for a good-faith determination, timing considerations for requesting court approval, and strategic reasons for pursuing a finding of good faith. It details the motion and alternative application procedures for obtaining court approval and how nonsettling defendants may contest good faith. This Note also addresses the legal effects of a good faith settlement, including barring claims for equitable indemnity or contribution from nonsettling defendants and reducing the plaintiff's claims against them by the settlement amount. It discusses the Tech-Bilt factors for assessing good faith, such as the settling defendant's proportionate liability and the settlement amount. This Note highlights the significance of the court's discretion in balancing public policies of encouraging settlements and equitable cost-sharing among parties at fault.