Judge: Ronald F. Frank, Case: 20TRCV00959, Date: 2023-01-11 Tentative Ruling
Case Number: 20TRCV00959 Hearing Date: January 11, 2023 Dept: 8
Tentative Ruling
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HEARING DATE: January 11, 2023¿
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CASE NUMBER: 20TRCV00959
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CASE NAME: Rockhill
Insurance Company v. HH Drywall, Inc., et al .
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MOVING PARTY: Defendants Westwood Building Materials Co. and Clinch-On
Cornerbead Company
RESPONDING PARTY: Defendant,
HH Drywall, Inc.
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TRIAL DATE: May 3, 2023
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MOTION:¿ (1) Defendant, Westwood
Building Materials Co.’s Application for Order Determining Good Faith
Settlement
(2) Defendant/Cross-Complainant, Clinch-On Cornerbead
Company’s Application for Determination of Good Faith Settlement
Tentative Rulings: (1) GRANTED
(2) GRANTED
I. BACKGROUND¿
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A. Factual¿
On December 31, 2020, Plaintiff,
Rockhill Insurance Company (“Rockhill”) filed an insurance subrogation complaint
seeking to recover the $355,000 it paid on behalf of general contractor South
Swell to its homeowner. The Suit is
brought against Defendants HH Drywall, Inc. (“HH Drywall”), Clinch on Cornerbead Company
(“Clinch On”), Westwood Building Materials Co. (“Westwood”), and DOES 1 through 20,
inclusive. Plaintiff, Rockhill, insured the general contractor,
Cross-Defendant Design + Build by South Swell, Inc. (“South Swell”). South
Swell thereafter contracted with Defendant/Cross-Defendant HH Drywall to
provide materials and installation of the drywall system at the Harris
residence. HH Drywall purchased materials used in the construction from
Cross-Defendant Westwood, including the galvanized steel cornerbeads which were
ultimately installed in this case. The galvanized steel cornerbeads purchased
from Westwood were produced by Defendant/Cross Defendant Clinch On.
HH
Drywall installed drywall and galvanized steel cornerbeads on the property. The
operative theory of Plaintiff’s subrogation case is that there is corrosion
(rusting) of a majority of the corner beads. The corrosion caused the metal to
expand, resulting in cracked and peeling paint throughout the property. Repairs
were made throughout all levels of the home to the paint and cornerbeads.
Rockhill seeks contribution and reimbursement from HH Drywall in this action
because the homeowners sued the GC for construction defects allegedly caused by
HH Drywall. Rockhill alleges that the drywall system installed by HH Drywall
was defective and caused damage to the interior walls of the property.
Plaintiff Rockwell, Defendant
Westwood, and Defendant Clinch entered into a settlement agreement on September
23, 2022. (Declaration
of Peter M. Hughes “Hughes Decl.”, ¶ 2.) Defendant Westwood agreed to pay Plaintiff
$20,000 and Defendant Clinch agreed to pay plaintiff $30,000. (Hughes Decl., ¶
3.) Plaintiff agreed to settle all
claims against Defendant Westwood and Defendant Clinch and to dismiss both
Defendants from this action. (Hughes Decl. ¶ 3.) At issue in these motions is whether the
$50,000 worth of settlement money meets the parameters for a determination of
good faith settlement, absolving the two settling parties from the indemnity
and contribution cross-complaints by the non-settling parties.
B. Procedural
1.
Westwood
Building Materials Co.’s Application for Order Determining Good Faith
Settlement
On
September 27, 2022, Defendant Westwood filed an application for Determination
of Good Faith Settlement of Defendant Westwood. On October 14, 2022, Defendant
HH Drywall filed its opposition to the application with a supporting expert
declaration. On November 2, 2022, Defendant Westwood filed a reply brief with a
declaration of its expert.
On November 9, 2022, this Court
continued this Motion, encouraging the parties to file additional briefings
regarding Westwood’s Good Faith of a Settlement. In response, on November 30, 2022, Defendant Westwood Building Materials Company filed
a Supplemental Brief in support of the Application for Good Faith Settlement.
On November 30, 2022, Plaintiff
Rockhill filed a reply brief opposing Defendant HH Drywall, Inc’s Motion to
Contest Defendant Westwood Building Materials Company’s Application for
Determination of Good Faith Settlement. Also on
November 30, 2022, HH Drywall, Inc. filed a supplemental opposition to Westwood
Building Materials Company’s Application for Determination of Good Faith
Settlement.
2.
Clinch-On
Cornerbead Company’s Application for Determination of Good Faith Settlement
On November 3, 2022, Defendant/Cross-Complainant, Clinch-On
Cornerbead Company filed an Application for Determination of Good Faith
Settlement. On December 28, 2022 Defendant HH Drywall, Inc. filed an Opposition
to Clinch-On Cornerbead Company’s Application for Determination of Good Faith
Settlement. While arguably tardy, the opposition
is considered nonetheless as providing further information for the Court to
consider.
Collectively, the parties have filed at least a half-dozen declaration
supporting their positions and opposing other parties’ positions. The Court has read and considered each
declaration to be included in the good faith settlement analysis even though it
has not parsed out each declaration or cited to specific paragraphs for the opinions
or references each expert made.
¿II. MOVING PARTY’S GROUNDS
FOR MOTION
Defendant,
Westwood applies for an order determining good faith settlement of Defendant
Westwood the grounds that Plaintiff Rockhill has settled its claims against this
Defendant Westwood and the settlement was made in good faith at an arm’s length
with the assistance of the mediator and there was no collusion between the
parties. Westwood did not provide its detailed factual basis for the
application initially, consistent with the short-form procedure recognized by City
of Grand View Terrace. Instead, Westwood awaited receipt of a challenge to
its application and then filed a brief, and declarations of counsel and its
construction expert, responding to HH Drywall’s brief and expert declaration
¿III. REQUEST FOR JUDICIAL
NOTICE
Defendant,
Westwood has requested that this Court take judicial notice of the Complaint in
this action under Evidence Code § 452(d)(1). This Court GRANTS Defendant
Westwood’s Request for Judicial Notice, particularly the dollar amount claimed
by Westwood as having been paid to or on behalf of its insureds.
IV. EVIDENTIARY OBJECTIONS
On
December 20, 2022, Rockwell Insurance Objected to Evidence in Support of Reply
Brief Opposing Defendant HH Drywall, Inc.’s motion to Contest Defendant
Westwood Building Materials Company’s Application for Determination of Good
Faith Settlement.
Sustained: none.
Overruled: 1-27. The Court overrules the objections for
purposes of evaluating the Tech-Bilt factors, without prejudice to the objections
being reasserted at a later evidentiary proceeding such as MSJ or trial. The Court instead in its discretion has used
the grounds for objections as a basis for giving less or little weight to many
of the statements made. For example, the Court gives very little weight
to opinions such as “could have been
caused by multiple contributing factors.”
V. ANALYSIS
A. Legal Standard
California Code of Civil Procedure section 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).)
“The
party asserting the lack of good faith shall have the burden of proof on that
issue.” (Code Civ. Proc. § 877.6(d).) On Westwood’s application, that places
the burden on HH Drywall to show a lack of good faith.
In Tech-Bilt, Inc. v. Woodward-Clyde & Associates
(1985) 38 Cal.3d 488, 499, the California Supreme Court identified the
following nonexclusive factors courts are to consider in determining if a
settlement is in good faith under section 877.6: “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.”
In City of Grand View Terrace v. Superior Court
(1987) 192 Cal.App.3d 1251, 1261, the court provided the following guidance
regarding a motion for a good faith settlement determination:
This court
notes that of the hundreds of motions for good faith determination presented
for trial court approval each year, the overwhelming majority are unopposed and
granted summarily by the trial court. At the time of filing in many
cases, the moving party does not know if a contest will develop. If each
motion required a full recital by declaration or affidavit setting forth a
complete factual response to all of the Tech-Bilt factors, literally
thousands of attorney hours would be consumed and inch-thick motions would have
to be read and considered by trial courts in an exercise which would waste
valuable judicial and legal time and clients’ resources. . . . That is to say,
when no one objects, the barebones motion which sets forth the ground of good
faith, accompanied by a declaration which sets forth a brief background of the
case is sufficient.
If the good
faith settlement is contested, section 877.6, subdivision (d), sets forth a
workable ground rule for the hearing by placing the burden of proving the lack
of good faith on the contesting party. Once there is a showing made by
the settlor of the settlement, the burden of proof on the issue of good faith
shifts to the nonsettlor who asserts that the settlement was not made in good
faith. If contested, declarations by the nonsettlor should be filed
which in many cases could require the moving party to file responsive counter declarations to
negate the lack of good faith asserted by the nonsettling contesting party.
(192 Cal.App.3d 1251, 1260-61 (citation omitted).)
The evaluation of whether a settlement was made in good
faith is required to “be made on the basis of information available at the time
of settlement.” (Tech-Bilt, Inc., supra, 38 Cal.3d at
499.) “‘[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.]” (Id.)
“The party asserting the lack of good faith, who has the
burden of proof on that issue (§ 877.6, subd. (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.” (Id. at 499-500.)
“[A] court not only looks at the alleged tortfeasor's
potential liability to the plaintiff, but it must also consider the culpability
of the tortfeasor vis-à-vis other parties alleged to be responsible for the
same injury. Potential liability for indemnity to a nonsettling defendant is
an important consideration for the trial court in determining whether to
approve a settlement by an alleged tortfeasor. [Citation.]” (TSI
Seismic Tenant Space, Inc. v. Superior Court (2007) 149 Cal.App.4th 159,
166.)
B.
Westwood
Building Materials Co.’s Application for Order Determining Good Faith
Settlement
Defendant HH Drywall asserts that
Westwood failed to meet its statutory burden under § 877.6 to show the basis on
which its motion for determination of good faith settlement is made. HH Drywall
asserts that Westwood filed concurrently with its Application for
Determination of Good Faith Settlement only the “Declaration of Peter M.
Hughes, Esq. in Support of Defendant Westwood Building Materials Co.’s
Application for Determination of Good Faith Settlement,” which merely requests
judicial notice of the Complaint and offers no other facts in support of the
motion. Defendant further
alleges that Westwood’s application includes no evidence,
citations, or analysis in support of the motion. Defendant contends that, there
is no basis from which it can be said to have met its factual burden under Cal.
Civ. Code §877 since Westwood failed to introduce any evidence that would give
the trial court a reasonable basis upon which to make any findings as to any
settling or non-settling party’s proportionate liability, let alone whether the
amounts identified to each settling party are “within the ballpark” of that
liability. (Abbott Ford, Inc. v. Superior Ct. (1987) 43 Cal. 3d 858, 874.)
In reply, Westwood has presented the factual basis for this
settlement as well as the terms of the settlement. In Tech-Bilt, Inc. v.
Woodward-Clyde & Associates (1985) 38 Cal.3d 488, 499, the California
Supreme Court identified the following nonexclusive factors courts are to
consider in determining if a settlement is in good faith under section 877.6:
“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.”
Here,
Westwood first asserts that the only cause of action brought against Westwood
was for product liability. Westwood argues that in light of Defendant’s
factual and legal defenses, and each party’s share of fault, Defendant’s
potential liability is minimal at best. (See Hughes Decl. at ¶ 3.) Nonetheless,
Defendant Westwood notes that it has agreed to pay Plaintiff twenty thousand
dollars for a full settlement and general release of any and all claims
Plaintiff has or might have against Defendant at the time the settlement takes
effect. (Id.) Westwood notes that Mr. Morgan has opined that Defendant
Westwood paid a reasonable settlement amount considering all of the facts
presented. (Morgan Decl. at ¶ 14.) Therefore, Defendant Westwood argues that
the dollar value of the settlement at issue is well within the reasonable range
of Defendant’s proportionate share of liability.
Further, Defendant Westwood asserts
that the settlement was reached with each settling party represented by his or
its own, competent counsel as applicable. (See Hughes Decl. at ¶ 4.) Defendant
Westwood argues that the settlement was reached at an arm’s length with the
assistance of the mediator, and that there is no evidence or indication of
collusion. (Id.) Defendant Westwood asserts that the settlement was not
structured in a manner so as to defraud any nonsettling parties. Lastly,
Defendant Westwood acknowledges that although Defendant HH Drywall rejects the
proposition that liability would be found at time of trial, the total
consideration outlined above is within the ballpark set forth in Tech-Bilt.
In its supplemental briefing,
Westwood emphasized that it had complied with the requirements set forth in the
City of Grand Terrace v. Superior Court (“City of Grand Terrace”)
case and the Tech-Bilt factors. In City of Grand Terrace, the
Court provided additional guidance with respect to the moving settlor’s
evidentiary burden under section 877.6. (City of Grand Terrace v. Superior
Court (1987) Cal.App.3d 1251.) The Court explained that when the claimed
good faith nature of a settlement is contested, subdivision (d) of section
877.6 provides a “workable ground rule” for the hearing on a motion for a good
faith settlement determination (Id. at 1261.) Section 877.6(d) provides:
“The party asserting the lack of god faith shall have the burden of proof on
that issue.”
The court explained that in
contested cases, the moving settlor has the initial burden of only “showing…the
settlement.” (Ibid.) The court reasoned that in many cases the
moving party does not know at the time
of the filing whether a contest will develop because the overwhelming majority
of motions for good faith determination are unopposed and summarily granted. (Ibid.)
“If each motion required a full recital by declaration or affidavit setting
forth a complete factual response to all of the Tech-Bilt factors,” the
court explained, :literally thousands of attorney hours would be consumed and
inch-thick motions would have to be read and considered by trial courts in an
exercise which would waste valuable judicial and legal time and clients’
resources.” (Ibid.) Noting that Tech-Bilt was decided on a
“contested basis,” the Court of Appeal in City of grand Terrace
concluded that a trial court is required to consider and weigh the Tech-Bilt
factors “only when the good faith nature of a settlement is disputed,” and
“brief background of the case,” is sufficient. (Ibid.)
Once the moving settlor has met its
initial burden of making a prima facie showing that the settlement is in good
faith, under section 877.6(d) the burden of proof on the issue of good faith
shifts to the nonsettling party contesting the proposed settlement to prove
that the proposed settlement is so far “out of the ballpark” in relation to the
Tech-Bilt factors as to be inconsistent with the equitable objectives of
section 877.6(d). (Tech-Bilt, supra, 38 Cal.3d 499-500; City
of Grand Terrace, supra, 192 Cal.App.3d at 1261-1262.)
Here, Westwood asserts that it met
the requirements set forth by City of Grand Terrace by submitting
sufficient evidence to support its application and a declaration outlining a
brief background of the case and the settlement. Additionally, Westwood
contends that it filed the reply brief to negate the lack of good faith
arguments asserted by HH Drywall. Westwood also asserts that it has met the Tech-Bilt
factors in its supplemental brief.
In HH Drywall’s supplemental
opposition to Westwood’s reply brief in support of its application for
determination of good faith settlement, HH Drywall asserts that It is clear
that this is a product defect case and not an improper installation case. HH Drywall
notes that it did not store any Drywall Products Prior to Installation, its
installation of steel cornerbead materials in Coastal Home is in conformity
with Drywall Industry Standards, Similar Clinch-On Product Defects Existed at
other properties, and that their expert found that 100% of the damages in this
case are attributable to Clinch-On Cornerbead Company and/or Westwood Building
Materials Company. As such, HH Drywall contends that Clinch-on and Westwood’s
combined settlement of $50,000 is inadequate and fails to satisfy the
requirements of the California Code of Civil Procedure, section 877 and Tech-Bilt
factors.
Additionally, Plaintiff Rockhill
Insurance Company filed a reply brief opposing Defendant HH Drywall, Inc.’s
Motion to Contest Defendant Westwood Building Materials Company’s Application
for Determination of Good Faith Settlement.
Rockhill asserts that the settlement was made in good faith because: (1)
the amount to be paid in settlement by Westwood fairly approximates Westwood’s
proportion of potential liability in this matter; (2) the settlement amount is
fully allocated to Rockhill’s total damages arising out of the cornerbead
corrosion at the subject property; (3) there is no need for allocation proceeds
among multiple plaintiffs; (4) there is no need to prove that Westwood’s
settlement is equal to or more than the amount I would pay should a jury find it
guilty at trial; (5) Rockhill knows of no known financial hardships or
insurance policy limit issue for Westwood; and (6) Westwood and Rockhill did
not engage in collusion, fraud, or tortious conduct aimed to injure the
interests of nonsettling defendants. As such, Rockhill requests that this Court
determine the settlement to be made in good faith pursuant to section 877.6 and
the Tech-Bilt factors.
C.
Clinch-On
Cornerbead Company’s Application for Determination of Good Faith Settlement
On November 3, 2022, Clinch-On filed an Application for
Determination of Good Faith Settlement. Clinch-On requests that this Court
determine that the settlement is in good faith in accordance with the
provisions of Code of Civil procedure section 877.6(a)(2) and for an order barring
any and all other joint tortfeasors and co-obligors from any further claims
against Clinch-On, for equitable comparative contribution, or partial or
comparative indemnity, based on comparative negligence or comparative fault.
Clinch-On asserts that Rockhill Insurance Company has
agreed to accept $30,000.00 in exchange for a full and final release of any and
all claims, known or unknown, against clinch-On in this lawsuit as alleged by
Rockhill in the cross-complaint in the above-entitled action. This settlement
is contingent upon this Court’s order that the settlement is in good faith and
barring all claims and cross-complaints for equitable comparative contribution,
or partial or comparative indemnity, based on comparative negligence or
comparative fault, for damages arising out of the incident which is the subject
of the instant lawsuit.
On
December 28, 2022, Defendant HH Drywall, Inc. filed an opposition. In its
opposition, HH Drywall claims that Clinch-On failed to make a sufficient
evidentiary showing to satisfy its burden under section 877. HH Drywall asserts
that clinch-on failed to introduce any evidence that would give the trial court
a reasonable basis upon which to make any findings as to any settling of
non-settling party’s proportionate liability, let alone whether the amounts
identified to each settling party are “within the ballpark” of the liability.
Thus, HH Drywall claims it is impossible for a court to exercise its discretion
in an appropriate fashion, and Clinch-o’s motion must be denied.
HH
Drywall also contends that Clinch-On failed to provide Plaintiff’s probable
recovery and the settling of Defendant’s proportional liability. HH Drywall
asserts that while Clinch-on stated that it has reached settlement with
Plaintiff in this case for the sum of $30,00, it has made no attempt to place
this proposed settlement within the context of Plaintiff’s total claimed
damages, it has not alleged any facts regarding how this figure was reached,
nor has it made any assertions as to Plaintiff’s likely recovery at trial. HH
Drywall also argues that Clinch-On failed to provide evidence of its financial
condition and insurance policy. HH Drywall notes that under Tech-Bilt,
Clinch-on’s financial condition and insurance policy limits are relevant and
critical to the court’s inquiry as to the reasonableness, and thus the good
faith, of the proffered settlement.
Further,
HH Drywall contends that the settlement is outside the “Ball Park” of
reasonableness and must be denied. HH Drywall argues that there is substantial
evidence that the conduct of HH Drywall did not contribute to Plaintiff’s
damages. HH Drywall has offered the declaration of HH Drywall’s experts, Paul
Russel of Axis Consulting and the Declaration of corrosion and material expert,
Gerald F. Zamiski, of Vollmer-Gray Engineering. Lastly, HH Drywall assert that
Clinch-On’s “Declaration of Josiah Boggs” lacks foundation and is inadmissible
with respect to its assertions regarding the manufacture of the clinch-on
materials.
VI. CONCLUSION
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At
a hearing on a Good Faith Settlement Motion, the Court is placed in a position of
anticipating what a jury might ultimately decide at trial, but without all of the
parties spending a week or more presenting expert opinions and cross-examination
of that testimony in a multiple defendant construction defect and product liability
trial. Here, the first Tech-Bilt factor,
a rough approximation of the Plaintiff’s total recovery is $355,000 and the two
settling parties collectively have agreed to pay $50,000, contingent on the
Court finding the settlements were in good faith thereby extricating them from
the trial and cross-complaint exposure. The
rough approximation of the settlors’ proportionate liability is vigorously
disputed and will be the subject of conflicting expert testimony at trial. Is 14% a reasonable or “rough” approximation
of what the seller and manufacturer of the galvanized cornerbead materials
might be found as their combined proportionate share of liability in a special
verdict at trial? Or put another way, has
the party opposing the good faith determination carried of burden of proving
that the pre-trial settlement is not in good faith? The Court weighs these elements in the Tech-Bilt
calculus. There is no dispute that the cornerbeads
were galvanized, and that the inclusion of zinc on a steel construction
material product is the standard of care for a steel cornerbead manufacturer. If the jury finds the cornerbeads to have
been properly galvanized, rejects the warning label contention, and accepts
expert testimony that a properly installed galvanized steel product does not
rust in the short period of time the cornerbeads were in use in this newly
constructed house, then Clinch-On and Westwood will have a 0% responsibility on
the jury special verdict form. 14% is considerably
more than 0%.
Factor
2 is the amount paid in settlement. The manufacturer
paid $30,000 or 8.45% , which was $10,000 more than the retailer of the claimed
defective product who is paying 5.6%, of the plaintiff’s potential total
recovery. Of course, if the jury were to
allocate 25% responsibility to the homeowner for failing to provide adequate
ventilation or for having unanticipated excessively moist conditions as compared
to other coastline properties where galvanized cornerbeads have been used for
years without product failure, then the collective percentage of the pre-trials
settlement rises to nearly 19%, and if the jury were to determine the amounts Plaintiff
paid should be discounted for failure to mitigate, the settlors’ collective contribution
might be much higher. On the other hand,
if admissible evidence were presented at trial of failures of other Clinch-On
galvanized products in the absence of claimed saltwater contamination, then the
manufacturer and retailer may have underpaid.
Factor
3 is the discount factor a court should apply when judging a pre-trial settlement. Parties are regularly found to have settled
in good faith when paying considerably less than their “fair share” when paying
earlier in the case rather than after a verdict. Parties are entitled to benefit from settling,
implicitly waiving their right to present evidence and pursue a defense
verdict. There is no set standard for assigning
a value or eight to such a discount factor but the Court, in its discretion,
applies over 3 decades of litigation experience including numerous product liability
trials and several mediated settlements of construction defect cases in
accounting for this factor.
Factor
4 is not implicated in the analysis in this case in the Court’s judgment, since
the policy limits or balance sheet of the settlors are not in play on the facts
of this case.
Factor
5 is also not in play here in the Court’s view, since the evidence presented to
the Court is that the settlement occurred during an all-hands mediation where HH
Drywall had the same ability to present its view of the facts and conflicting expert
opinions to the mediator, make an offer, contribute to a pooled settlement, or
otherwise participate in a potential global resolution that did not crystallize. There is no evidence presented by HH Drywall
of any fraud or collusion. There are no
collusive terms in the settlement agreement.
There is no evidence presented that Plaintiff extracted promises from
either of the settlors regarding the use of experts or other evidence should the
case proceed to trial.
Factor
6 is an amalgamation of the other factors, in the totality of the circumstances. Is the $50,000 combined amount, or are the
$20,000 and $30,000 respective contributions by the settlors, outside the “ballpark”
of a reasonable settlement considering all the other factors? The Court finds that HH Drywall has not
convinced the Court that the individual or collective settlement amounts are
out of the ballpark. HH Drywall may well
prevail at trial on its theory that this is a 100% product liability exposure,
meaning it will obtain a defense verdict at trial. HH Drywall may well be
successful in raising discounting factors, failure to mitigate factors, and impeachment
of the plaintiff’s metallurgist and contractor expert. In considering this factor, the Court also
takes into account the implicit opinion of plaintiff’s counsel that it
negotiated at mediation the most settlement money it could from defendants who
potentially could obtain defense verdicts themselves.
The Court cannot forecast exactly
what a jury will do with the facts and expert opinions in this case. To be sure, the parties remaining at trial
will be educated and informed by the good faith determination presentations on
ways to tighten their presentations, sharpen their pencils, and steer clear of some
of the shortcomings in their declarations here.
But applying the standards of now decades of published wisdom on
addressing 877.6 motions, the Court finds that both the Westwood and Clinch-On settlements
meet the standards for a determination of good faith here.