Leung v. Verdugo Hills Hospital

NCLC urged the California Supreme Court to hold that a plaintiff’s settlement of a lawsuit with one joint tortfeasor which does not satisfy the “good faith” standards established by California law, also functions as a release of liability for the non-settling parties under the common law’s 200-year-old “release of liability” rule. In this case, a medical malpractice plaintiff settled with the doctor co-defendant, even though the trial court had previously ruled that the settlement was not in “good faith” under Section 877 of California’s Code of Civil Procedure. The court found the doctor’s share of liability under the settlement was grossly disproportionate to the hospital co-defendant’s potential share of liability. In its amicus brief, NCLC argued that the appeals court correctly ruled that under the common law liability release rule, the effect of the settlement made not in good faith was to release from liability all other joint-and-several tortfeasors. In its amicus brief, NCLC’s argued that the outcome of this case could have a significant effect on the dual tort system goals of encouraging early settlement and equitable sharing of costs in multi-defendant cases involving joint tortfeasor defendants.

This case is not yet decided.

Amicus brief filed 11/23/2011.