Ritter v. Technicolor Corp.

Opinion

DRAPER, P. J.

By California statute, release of an agent before trial does not discharge his principal from tort liability, even though the sole basis alleged for recovery from the principal is his vicarious liability for the acts of his agent.

Plaintiffs’ complaint alleges that defendants Filmland Corp. and two individuals who dominated it made knowingly false representations to plaintiffs to induce them to enter into contracts with Filmland for distribution of films to be made or processed by co-defendants Technicolor Corporation and Eastman Kodak Company. Filmland and the individuals are alleged to have been the agents of Technicolor and Eastman. After the action was filed, and before any trial, plaintiffs filed a document headed “dismissal with prejudice as to defendants Filmland Corp., Thomas Laber and Joseph Boughlosky only.” It recited: “The above-entitled action has been fully and finally settled and compromised and is hereby dismissed with prejudice as to' defendants Filmland Corp., . . . Boughlosky and . . . Laber only, said dismissal to operate as a retraxit.” Defendant principals moved to dismiss the action as to them and the motion was granted. Plaintiffs appealed. Judgment of dismissal was then entered. Although the notice of appeal was premature, we find good cause to treat it as filed immediately after entry of judgment (Cal. Rules of Court, rule 2(c)). The appeal has been dismissed as to Eastman, and is before us only as to Technicolor.

In 1957, a statute entitled “Releases From and Contribution Among Joint Tortfeasors” was adopted (Stats. 1957, ch. 1700, p. 3076). It added six sections to the Code of Civil Procedure (§§ 875-880). Section 877 reads: “Where a release, dismissal with or without prejudice, or a covenant not to sue or not to enforce judgment 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—(a) It shall not discharge any other such tortfeasor from liability unless its terms so provide, but it shall reduce the claims against the others in the amount stipulated by the release, the dismissal or

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the covenant, or in the amount of the consideration paid for it whichever is the greater; ...”