§ 877.Effect of Release, Dismissal Or Covenant Not to Sue Or Enforce Judgment to One Or More of Joint Tortfeasors

This is the settlement statute that makes partial settlements workable in multi-defendant litigation. When a plaintiff gives a release, a dismissal (with or without prejudice), or a covenant not to sue or enforce judgment to one or more tortfeasors or co-obligors in good faith, before verdict or judgment, § 877 tells courts how to treat everyone left in the case.

Subdivision (a) sets an offset rule rather than a full discharge: the settlement doesn't let the remaining defendants off the hook unless its own terms say so, but it does reduce the claims against them — by whichever is greater, the amount the settlement document states or the actual consideration paid for it. Subdivision (b) protects the settling party from being pulled back into the case: once the settlement is given, that party owes no contribution to anyone else, a protection § 877.6 turns into a court-tested procedure.

Two exceptions narrow the section's reach. Subdivision (c) excludes co-obligors who already agreed in writing to apportion losses among themselves — their private agreement controls instead. Subdivision (d) excludes releases given to a co-obligor on a contract debt where the underlying contract predates January 1, 1988, preserving whatever rule applied to those older contracts.