Bay Development, Ltd. v. Superior Court

Opinion

KENNARD, J.

In this case we must decide whether a tort defendant that has entered into a good faith settlement with the plaintiff remains liable to other defendants for an indemnity claim that rests on a theory of “implied contractual indemnity.” A brief overview of the relevant legal background may help to place this complex issue in perspective.

When a tort action involves multiple defendants, there is often an inherent tension between the state’s interest in encouraging the voluntary settlement of litigation and the state’s interest in promoting a fair apportionment of liability among…