Judge: Stephen I. Goorvitch, Case: 21STCV29498, Date: 2023-03-23 Tentative Ruling

Case Number: 21STCV29498    Hearing Date: March 23, 2023    Dept: 39

Bridgette Bako v. City of Los Angeles, et al.

Case No. 21STCV29498

Motion for Determination of Good Faith Settlement

Plaintiff Brigette Bako (“Plaintiff”) filed this action against the City of Los Angeles (the “City”) and Joyce Anne Forest (“Forest”), asserting causes of action for dangerous condition of public property, inverse condemnation, negligence, and nuisance.  Plaintiff alleges that on January 6, 2021, as a result of a roadway’s dangerous condition and the City’s acts and omissions, Forest’s car slid off the roadway, traveled down the hill, and collided with Plaintiff’s house.  Plaintiff alleges that the incident caused Plaintiff’s property and house to become structurally compromised, destabilized, damages, and unsafe.  Forest and Plaintiff have settled for $25,000, and Forest seeks a determination that the settlement was in good faith.  The City opposes the motion.

In Tech-Bilt, Inc. v. Woodward-Clyde & Associates (1985) 38 Cal.3d 488, the court set forth the factors to consider when determining whether a settlement is made in good faith.  The Tech-Bilt factors are: (1) a rough approximation of plaintiff’s total recovery and the settlor’s proportionate liability; (2) the amount paid in settlement; (3) the allocation of settlement proceeds among plaintiffs; (4) a recognition that a settlor should pay less in settlement than he would if he were found liable after a trial; (5) the financial conditions and insurance policy limits of settling defendants; and (6) the existence of collusion, fraud, or tortious conduct aimed to injure the interests of the non-settling defendants.  (Tech-Bilt, Inc. v. Woodward-Clyde & Assoc. (1985) 38 Cal.3d 488, 498-501.) 

            The Court has concerns because the settlement amount is a fraction of the total alleged damages in this case.  Although Forest establishes that the settlement amount is the limit of her policy, she provides insufficient evidence concerning her financial condition.  She provides a declaration merely stating: “I do not have any substantial savings accounts, stocks, mutual funds or other liquid assets besides my retirement that I need to live off of as a retiree.”  (Declaration of Joyce Forest, ¶ 2.)  The declaration does not include her financial records, so the Court has no means of verifying this representation.  Nor does Forest include information concerning her retirement.  Although Forest states that her home is owned by a trust, she is the trustee of the Joyce Forest 2013 Revocable Trust, which effectively means she owns the house. 

            The Court also is concerned by Forest’s potential liability.  According to the City, Forest parked her car without securing it, as a result of which it rolled backwards, traveled down the hill, and collided with Plaintiff’s house.  These facts, if true, suggest that Forest bears a significant portion of liability for the incident.  Forest provides no evidence on this issue.  “If there is no substantial evidence to support a critical assumption as to the nature and extent of a settling defendant's liability, then a determination of good faith based upon such assumption is an abuse of discretion.”  (Mattco Forge, Inc. v. Arthur Young & Co. (1995) 38 Cal.App.4th 1337, 1350, internal quotations and citations omitted.) 

            Finally, the Court cannot exclude the possibility of collusion based upon Plaintiff and Forest’s relationship as neighbors.  There is insufficient evidence in the record to address this point. 

            Based upon the foregoing, the Court orders as follows:

            1.         The Court continues the hearing on Forest’s motion for determination of good faith settlement to __________, 2023, at 8:30 a.m.

            2.         Forest may file a supplemental brief and evidence addressing the Court’s concerns on or before __________, 2023.

            3.         The City and/or Plaintiff may file a response on or before _________, 2023.

            4.         Forest’s counsel shall provide notice and file proof of such with the Court.