Judge: Lee W. Tsao, Case: BC680294, Date: 2023-01-10 Tentative Ruling

Case Number: BC680294    Hearing Date: January 10, 2023    Dept: C

MYERS, ET AL.  v. COUNTY OF LOS ANGELES, ET AL.

CASE NO.:  BC680294

HEARING:  01/10/23

 

#5

TENTATIVE ORDER

 

Defendant CITY OF COMPTON’s unopposed Motion for Determination of Good Faith Settlement is GRANTED.

 

Moving party to give notice.

 

Background

 

This action was initiated on October 19, 2017. The operative First Amended Complaint (“FAC”) alleges that Defendants illegally dumped several tons of dirt on Alameda Street, a public right of way without permission and without warning signs to the public. On April 9, 2017, Decedent Rodney Myers, Sr. rode his motorcycle straight into the dirt, causing his death. Based thereon, the FAC asserts causes of action for:

 

1.    Negligence (v. Walsh Shea)

2.    Negligence (v. HNTB)

3.    Negligence (v. J.F. Shea Construction, Inc.)

4.    Negligence (v. Comstock Company (ARUP))

5.    Premises Liability v. (City of Compton).

 

Defendant City of Compton (hereinafter “City”) now moves for determination of good faith settlement. As of January 5, 2023, no oppositions have been filed.

 

Trial is set for January 18, 2023.

 

Determination of Good Faith Settlement

 

          Legal Standard

 

California Code of Civil Procedure § 877.6(a)(1), provides, in relevant part, that, on noticed motion, “[a]ny party to an action wherein it is alleged that two or more parties are joint tortfeasors or co-obligors on a contract debt shall be entitled to a hearing on the issue of the good faith of a settlement entered into by the plaintiff . . . and one or more alleged tortfeasors or co-obligors . . . .”  “A determination by the court that the settlement was made in good faith shall bar any other joint tortfeasor or co-obligor from any further claims against the settling tortfeasor or co-obligor for equitable comparative contribution, or partial or comparative indemnity, based on comparative negligence or comparative fault.”  (Code Civ. Proc., § 877.6(c).)  Although a determination that a settlement was in good faith does not discharge any other party from liability, “it shall reduce the claims against the others in the amount stipulated” by the settlement.  (Code Civ. Proc., § 877(a).)

 

There is no precise method to determine whether parties entered into a good faith settlement. (Tech-Bilt, Inc. v. Woodward-Clyde Assoc. (1985) 38 Cal.3d 488, 495.) The court must balance between the public policy favoring settlements and the competing policy favoring equitable allocation of costs between tortfeasors. (Id. at 498-99.) To accomplish this, the California Supreme Court provided the following factors for determining whether a proposed settlement is based on good faith: (1) a rough approximation of plaintiff’s total recovery and the settling defendant’s proportionate liability; (2) the amount paid in settlement; (3) allocation of settlement amounts among plaintiffs; (4) recognition that a settlor should pay less in settlement than it would if it were found liable after trial; (5) financial conditions and insurance policy limits of the settling defendant; and (6) the existence of collusion, fraud, or tortious conduct aimed to injure the interests of non-settling defendants. (Id. at 499-500.) The burden of proof in asserting that a settlement lacked good faith falls upon the party making the assertion and it must show that “the settlement is so far ‘out of the ballpark’ in relation to these factors as to be inconsistent with the equitable objectives of [CCP § 877.6].” (Ibid.)

 

          Merits

 

City moves for a determination of good faith settlement pursuant to Section 877.6. In accordance with Plaintiffs’ two offers to compromise dated October 1, 2019, City has agreed to a settlement amounting to $250,000 for each Plaintiff in exchange for a dismissal of all claims against it with prejudice. (Aviles Decl. ¶¶ 8, 11-13.)

 

In this case, Plaintiffs’ theory of liability against City is premised on the allegations that City had notice of the illegally dumped dirt prior to the accident, failed to correct it in a reasonable time, and failed to warn of the dangerous condition.

 

The Court finds that the settlement between Plaintiffs and City was entered in good faith under the Tech-Bilt, Inc. factors. Preliminarily, the instant motion is unopposed. Further, the motion itself sets forth the grounds of good faith and is accompanied by a declaration which sets forth a brief background of the case in support of the above findings. (City of Grand Terrace v. Superior Court (1987) 192 Cal.App.3d 1251, 1261; see generally Aviles Decl.) For instance, based on the evidence, it is uncertain whether a jury will determine that the City is liable for Decedent’s accident because there are no eyewitnesses to how the accident occurred, facts pertaining to when the dirt was illegally dumped is based upon hearsay, and there is no evidence the City had actual or constructive notice of the dirt’s presence prior to the accident. (Motion at pg. 7.) Additionally, documentation is limited regarding Decedent’s financial support of the Plaintiffs. (Id.) Consequently, the offered settlement is proportionate to City’s liability and a rough approximation of Plaintiffs’ total recovery. Furthermore, the amount paid in settlement and the allocation of the settlement proceeds between the Plaintiffs is reasonable because it is based on the offers to compromise that Plaintiffs’ proposed. (Motion at pg. 8.) Moreover, it is recognized that City should pay less in settlement. (Id.; see also Tech-Bilt, supra, 38 Cal.3d at 499.) Finally, there is no evidence of the existence of collusion, fraud, or tortious conduct aimed to injure the interests of nonsettling defendants. (Motion at pg. 9; Aviles Decl. ¶ 14.)  This is further corroborated by the fact that the nonsettling defendants have not asserted any claims for indemnity or contribution against City.

 

Accordingly, the motion for determination of good faith settlement is GRANTED.