Franck

In this appeal we consider an issue of first impression: the proper reduction of a damages award against a nonsettling tortfeasor under Code of Civil Procedure section 877 when plaintiff and other defendants agree to a structured settlement calling for future periodic payments.

Defendant Polaris E-Z Go Division of Textron, Inc., (Polaris) was found liable for injuries sustained by plaintiff while riding on a snowmobile manufactured by Polaris. Damages were assessed at $300,000.

Prior to trial, pláintiff settled with defendants Todd and Robert Weichers (respectively, the driver and owner of the snowmobile) for a total of $215,000. Under the settlement they agreed, to pay $25,000 upon court approval of the settlement and a total of $190,000 in future periodic payments, commencing in 1983 and continuing until the year 2000. The Weichers’ insurance had a single accident coverage limit of $100,000. After paying $25,000, the insurance company used the balance of $75,000 to purchase an annuity contract that would finance the future payments of $190,000. Another defendant, the seller of the snowmobile, settled for a lump sum payment of $2,500. The court approved the…