Judge: Lee S. Arian, Case: 22STCV06605, Date: 2024-04-29 Tentative Ruling

Case Number: 22STCV06605    Hearing Date: April 29, 2024    Dept: 27

HON. LEE S. ARIAN 

DEPARTMENT 27 

TENTATIVE RULING 

 

Hearing Date: 4/29/2024 at 1:30 p.m. 

Case No./Name: 22STCV06605 DAVID LOPEZ BECERRA vs STATE OF CALIFORNIA 

Motion: Motion to Challenge the Good Faith of a Settlement 

Moving Party: Defendant City of Baldwin Park 

Responding Party: Defendant De Qiang Zhou 

Notice: Sufficient 

 

Ruling: Motion to Challenge the Good Faith of a Settlement is DENIED 

 

Background 

 

On February 22, 2022, Plaintiff filed the present premises liability case against Defendants City of Baldwin Park and De Qiang Zhou. Plaintiff alleges that he tripped and fell on a displaced sidewalk located in Baldwin Park. Defendant Zhou owns the property adjacent to the sidewalk where the incident occurred. On March 1, 2024, Plaintiff entered into a settlement agreement with Defendant Zhou for $5,000. On March 20, 2024, Defendant Baldwin Park filed the present motion contesting the good faith of the settlement on the basis that trees planted by Mr. Zhou allegedly caused the sidewalk to uplift and the $5,000 settlement between Zhou and Plaintiff is too far out of the ballpark to be considered a good faith settlement. 

 

Legal Standard¿ 

 

In an action involving two or more joint tortfeasors or co-obligors, when one tortfeasor or obligor enters into a settlement with the plaintiff, the other tortfeasors or obligors are entitled to a hearing on the issue of whether the settlement was entered into in good faith. (Code Civ. Proc., § 877.6(a).) Where a plaintiff settles with one of several joint tortfeasors or co-obligors without releasing the others, a determination of “good faith” discharges the settling defendant from liability to the other defendants for equitable contribution or comparative indemnity. (CCP § 877(a)-(b).) The amount paid by the settling defendant reduces the claim against the others (CCP § 877(a)), but a risk of prejudice remains because an unreasonably low settlement (i.e., with the “most culpable” tortfeasor) exposes the remaining defendants to a judgment exceeding their fair share of the liability. (See Bay Development, Ltd. v. Superior Court (1990) 50 Cal. 3d 1012, 1019-1020.) 

 

There is no precise yardstick for measuring the “good faith” of a settlement with one of several tortfeasors, but it must harmonize the public policy favoring settlements with the competing public policy favoring equitable sharing of costs among tortfeasors. (See Tech-Bilt, Inc. v. Woodward-Clyde & Associates (1985) 38 Cal.3d 488, 499.) 

 

“A more appropriate definition of ‘good faith,’ in keeping with the policies of American Motorcycle and the statute, would enable the trial court to inquire, among other things, whether the amount of the settlement is within the reasonable range of the settling tortfeasor's proportional share of comparative liability for the plaintiff's injuries. This is not to say that bad faith is ‘established by a showing that a settling defendant paid less than his theoretical proportionate or fair share.’ [Citation.] Such a rule would unduly discourage settlements. ‘For the damages are often speculative, and the probability of legal liability therefor is often uncertain or remote. And even where the claimant's damages are obviously great, and the liability therefor certain, a disproportionately low settlement figure is often reasonable in the case of a relatively insolvent, and uninsured, or underinsured, joint tortfeasor.’ [Citation.] Moreover, such a rule would tend to convert the pretrial settlement approval procedure into a full scale mini trial [citation]. 

 

“But these considerations do not lead to the conclusion that the amount of the settlement is irrelevant in determining good faith. Rather, the intent and policies underlying section 877.6 require that a number of factors be taken into account including a rough approximation of plaintiffs' total recovery and the settlor's proportionate liability, the amount paid in settlement, the allocation of settlement proceeds among plaintiffs, and a recognition that a settlor should pay less in settlement than he would if he were found liable after a trial. Other relevant considerations include the financial conditions and insurance policy limits of settling defendants, as well as the existence of collusion, fraud, or tortious conduct aimed to injure the interests of nonsettling defendants. [Citation.]  

 

Finally, practical considerations obviously require that the evaluation be made on the basis of information available at the time of settlement. ‘[A] defendant's settlement figure must not be grossly disproportionate to what a reasonable person, at the time of the settlement, would estimate the settling defendant's liability to be.’ [Citation.] The party asserting the lack of good faith, who has the burden of proof on that issue (§877.6(d)), should be permitted to demonstrate, if he can, that the settlement is so far ‘out of the ballpark’ in relation to these factors as to be inconsistent with the equitable objectives of the statute. Such a demonstration would establish that the proposed settlement was not a ‘settlement made in good faith’ within the terms of section 877.6. (Tech-Bilt, Inc., 38 Cal.3d at 499-500.) 

 

Analysis 

The parties agree on these facts: (1) the settlement between Defendant Zhou and Plaintiff is for $5,000, (2) Zhou's policy limit is $100,000, and (3) Plaintiff is seeking approximately $300,000 in general damages and $55,327 in special damages. Baldwin Park does not allege any type of collusion between Plaintiff and Zhou. The central disagreement between the parties concerns Defendant Zhou's estimated liability in this matter. 

  1. Sidewalk Accident Decisions 

For Zhou’s estimated liability, an analysis under the “Sidewalk Accident Decisions” doctrine, which governs property adjacent to a sidewalk, is required. The doctrine is based on case law explaining that sidewalks are public and thus no duty is owed to users of the sidewalk unless the abutting property owner created the hazardous condition. Streets and Highways Code §5610 provides that owners of lots fronting on a public street shall maintain any sidewalk in a condition that will not endanger persons and not interfere with the public convenience in the use of those works.¿ Pursuant to Jones v. Deeter (1984) 152 Cal.App.3d 798, 803, the duty imposed by this ordinance is owed to the city and not to persons using the sidewalk. “Under section 5610 the abutting owner bears the duty to repair defects in the sidewalk, regardless of whether he has created these defects. It was felt, however, that it would be unfair for such an owner to be held liable to travelers injured as a result of sidewalk defects which were not of the owner’s making. Thus, the ‘Sidewalk Accident Decisions’ doctrine arose; this doctrine holds that the abutting property owner is not liable in tort to travelers injured on the sidewalk unless the owner somehow creates the injurious sidewalk condition.” (Deeter, 152 Cal.App.3d at 803.)¿¿¿ 

¿ 

While generally a landowner is not liable for harm resulting from conditions or activities outside his property, on adjoining land or on the highway, street, or sidewalk, the landowner may be liable if the landowner created the defect or exercised dominion or control over the adjoining land (Jordan v. City of Sacramento (2007) 148 Cal.App.4th 1487, 1490-1491; Corcoran v. San Mateo (1953) 122 Cal.App.2d 355, 359; Schaefer v. Lenahan (1944) 63 Cal.App.2d 324, 326.)¿In settings where the abutting owners exercised control over the property such as by planting trees or habitually trimming or caring for them, these abutting owners have the duty to maintain the trees in a safe condition to make sure the roots do not cause a tripping hazard. (Alcaraz v. Vece, 14 Cal.4th 1149, 1162.) 

 

  1. Defendant Zhou’s Estimated Liability 

 

The Court is not persuaded by Defendant City of Baldwin Park’s argument for Zhou’s significant liability. In cases where non-government entities were found to be liable, it was due to their control over a portion of government property by maintaining it, fencing it in, or where roots of an adjacent tree encroached and created a tripping hazard. (See Jordan v. City of Sacramento (2007) 148 Cal.App.4th 1487, 1490-1491; Corcoran v. San Mateo (1953) 122 Cal.App.2d 355, 359; Schaefer v. Lenahan (1944) 63 Cal.App.2d 324, 326; Alcaraz v. Vece, 14 Cal.4th 1149, 1162.) The image provided by Baldwin Park shows that this is not the case here. (Exhibit 1.) Zhou’s property is completely fenced in and separated from the sidewalk, with no evidence that he is maintaining the sidewalk or exercising control over it. (Id.) Quite to the contrary, the fence provides a complete demarcation between the area of Zhou's control and the area outside of Zhou's control. (Id.) 

 

The Court also is not persuaded by Baldwin Park's argument that Zhou caused the sidewalk displacement leading to Plaintiff’s trip and fall. The Court examined the photos presented to it and noted that the uplift itself is minimal and the alleged tree causing the uplift is small, not the typical large tree whose roots would be displacing the sidewalk. (Exhibit 1.) There are also no visible signs of any roots causing the uplift, or any visible signs of roots going under the sidewalk. (Id.) Moreover, there is some distance between the trees at issue and the uplift. (Id.) The lift is most prominent near the street and there is almost no uplift near the tree. If the uplift was caused by the tree, one would generally expect the uplift nearer to the tree. 

Considering that the issue of causation is not obvious, expert witness testimony would have been appropriate; however, none was submitted. The party asserting the lack of good faith bears the burden of proof. (CCP §877.6(d)). Based on the evidence and images provided and the lack of expert witness testimony, Defendant City of Baldwin Park has failed to meet its burden in challenging Defendant Zhou’s share of the liability. Moreover, considering various factors detailed above, the Court finds that if Defendant Zhou filed a motion for summary judgment, he would most likely prevail, and Plaintiff's decision to settle the case for $5,000 before Zhou filed his motion is reasonable. Thus, Defendant City of Baldwin Park’s motion contesting good faith settlement is DENIED. 

 

PLEASE TAKE NOTICE: 

 

If a party intends to submit on this tentative ruling,¿the party must send an email to the court at¿sscdept27@lacourt.org¿with the Subject line “SUBMIT” followed by the case number. The body of the email must include the hearing date and time, counsel’s contact information, and the identity of the party submitting. 

 

Unless¿all¿parties submit by email to this tentative ruling, the parties should arrange to appear remotely (encouraged) or in person for oral argument. You should assume that others may appear at the hearing to argue. 

 

If the parties neither submit nor appear at hearing, the Court may take the motion off calendar or adopt the tentative ruling as the order of the Court. After the Court has issued a tentative ruling, the Court may prohibit the withdrawal of the subject motion without leave.