Multiple Parties

Question 1

What happens when a plaintiff settles a claim with multiple parties?

Answer 1

When parties settle a tort claim, the plaintiff signs an agreement releasing the defendant from further liability, while attempting to preserve rights against non-settling defendants.

Question 2

What happens when the parties cannot reach a settlement agreement?

Answer 2

When parties are unable to voluntarily settle a claim and a money judgment is instead entered after trial, the liability is extinguished when the defendant satisfies the judgment.

Question 3

What happens when a plaintiff signs a release under fraud, duress, undue influence, or mutual mistake?

Answer 3

Th courts will set aside a release only under these circumstances.

Question 4

What is the Single-Satisfaction Rule?

Answer 4

Plaintiffs are entitled to only a single satisfaction of their damages even when multiple parties are jointly and serverally liable for those damages.

Question 5

What happens when only one defendant pays?

Answer 5

Non-settling defendants who are jointly and severally liable get credit for amounts paid by settling defendants.

Question 6

Why would you carefully consider drafting a settlement release?

Answer 6

Releases must be carefully considered and crafted to release only those parties and their agents whom the parties intend to release.