Gauss
Gauss v. GAF Corp.
Opinion
Opinion
Parrilli, J.
These consolidated appeals raise a question about the enforceability of mass tort settlements under Code of Civil Procedure section 664.6. Specifically, can section 664.6 be used to enforce a settlement that was signed by a party’s agent, rather than the party itself, when the agent had sole and exclusive authority to settle claims on the party’s behalf? Reluctantly, we conclude the answer is no. The summary, expedited enforcement procedure afforded by section 664.6 is only available when a settlement satisfies the statutory requirements designed to ensure the parties have actually consented to the terms of the settlement. A writing not signed by one of the parties (and, in this case, silent as to the extent of a party’s obligation) does not satisfy section 664.6. Because the trial court entered judgment in these appeals pursuant to section 664.6, and reserved ruling on the plaintiffs’ alternative motions for summary judgment, we reverse the judgments and remand for further proceedings.
Background
I. The CCR
In 1988, several companies that previously manufactured, distributed or sold asbestos-containing products joined together to form a nonprofit corporation called…