Regal Recovery Agency, Inc. v. Superior Court

Opinion

BENKE, J.

The underlying suit arises out of the alleged wrongful death of Ernest Mosher who suffered fatal injuries during the repossession of his car. His estate brought suit against the bank, the towing company and the repossession company, Regal Recovery Agency (Regal) among others. The towing company settled first for $500,000, and had it confirmed as a good faith settlement; the bank settled second for $75,000 and had it confirmed as a good faith settlement; Regal settled for $100,000 but since there were no cross-complaints did not have the settlement confirmed. The suit was dismissed in December 1986.

Thereafter the towing company filed suit against Regal for indemnity or contribution. Regal answered and later amended its answer to add good faith settlement as an affirmative defense. However, Regal has been unable to obtain a confirmation of its settlement. It first sought a determination in the underlying suit brought by Mosher. However, the trial court properly refused to hear the matter because the suit had been dismissed and the court had no jurisdiction. Regal then filed a motion for good faith settlement in this case but the court declined to hear the matter believing it had no jurisdiction to resolve the issue of good faith settlement in the underlying

[695]

case. However, the trial court here had jurisdiction and should have heard the motion.

Code of Civil Procedure section 877, provides: “Where a . . . dismissal with or without prejudice, ... is given in good faith

before verdict or judgment

to one or more of a number of tortfeasors claimed to be liable for the same tort, ...[][] (b) [i]t

shall

discharge the party to whom it is given from

all

liability for any contribution to

any

other parties.” (Italics added.)

Here no judgment or verdict has been rendered. The case was dismissed. There is nothing in the statute to limit the court’s jurisdiction under these circumstances. Likewise, Code of Civil Procedure section 877.6, which sets forth the procedure for bringing a motion for good faith settlement, does not place any time constraints on the court’s jurisdiction. Rather the statute states: “(a) [a]ny party to an action wherein it is alleged that two or more parties are joint tortfeasors . . .