What is the effect of a judicially determined good faith settlement on a pending action or claim?

California, United States of America


The following excerpt is from Housing Group v. Superior Court, 24 Cal.App.4th 549, 29 Cal.Rptr.2d 460 (Cal. App. 1994):

"[E]mployment of a distinct procedure to adjudicate the effect of a judicially determined good faith settlement upon a pending action or claim not only is procedurally necessary but also serves an important salutary function: it focuses the court's attention distinctly upon two completely different substantive questions--whether the settlement was in good faith and whether the claim sought to be dismissed is of such a nature as to be barred by a good faith settlement." (Shane v. Superior Court, supra, 160 Cal.App.3d 1237, 1246, 207 Cal.Rptr. 210.) The need for such particularized adjudication becomes apparent in this case.

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