Reed

Zola Rhoades, Dennis Wilson and First Stop Realty (defendants) appeal from an order granting in part and denying in part their motion to set aside and/or to correct the judgment in favor of Lanny Reed (plaintiff). Defendants contend the trial court erred in declining to offset plaintiff’s litigation costs as prevailing party by the amount of the good faith settlement that plaintiff received from other joint tortfeasors. In defendants’ view, the reduction was required by Code of Civil Procedure section 877. (Further section references are to the Code of Civil Procedure unless specified otherwise.)

Section 877 provides for reduction of the “claims” against a tortfeasor by the amount “stipulated [in a good faith settlement between the plaintiff and another joint tortfeasor], or in the amount of the consideration paid for it whichever is greater . . . .” As we will explain, the word “claims” in section 877 ordinarily does not encompass costs awarded to the prevailing party after the issue of liability has been determined. Thus, a nonsettling defendant who loses at trial is not entitled to offset the settlement against the costs awarded to plaintiff as the prevailing party…