Armstrong World Industries, Inc. v. Superior Court

This original proceeding in mandate presents the narrow “good-faith settlement” issue of whether a defendant tortfeasor’s waiver of litigation costs in settling with a plaintiff constitutes “consideration paid” for the settlement within the meaning of section 877 of the Code of Civil Procedure, so as to reduce plaintiff’s total recovery against nonsettling defendants proportionately.

We determine that by operation of section 877, subdivision (a), a waiver of litigation costs by a settling defendant effects a reduction in the liability of nonsettling defendants in the same manner as though the settlement involved payment of the equivalent amount to plaintiff in cash.

The facts giving rise to this proceeding are simple and not in material dispute.

In September 1985, 10 occupants of a new office building filed suit against various entities responsible for construction of the building, claiming personal injuries from toxic chemicals that were being generated within the building.

In December 1986, plaintiffs added petitioner in place of a fictitiously named defendant. Petitioner had installed ceiling tiles in the building. Plaintiffs allege the tiles leaked formaldehyde…