Hess

Superior Court, Los Angeles County; William A. Drake [*] , Judge.

Law Offices of Michael J. Piuze, Michael J. Piuze and John Keiser, Los Angeles, for Plaintiff and Appellant.

Snell & Wilmer and Richard A. Derevan, for Defendant and Appellant.

Hugh F. Young, Jr., and Harvey M. Grossman for The Product Liability Advisory Council, Inc., as Amicus Curiae on behalf of Defendant and Appellant.

BROWN, J.

This case presents two unrelated issues. First, the plaintiff enters into a release agreement with one tortfeasor and his insurance company. The agreement, however, contains broad language ostensibly releasing all potential tortfeasors from liability. We now consider whether this language bars the plaintiffs claims against a tortfeasor who was not a party to the release. Based on the uncontroverted evidence at trial, we conclude it does not.

Second, the plaintiff obtains a judgment more favorable than his offer of compromise under Code of Civil Procedure section 998 (section 998 offer), and is entitled to interest on the judgment from the date of the offer to the date of satisfaction of judgment pursuant to Civil Code section 3291. We now consider whether the plaintiff is entitled…

This case presents two unrelated issues. First, the plaintiff enters into a release agreement with one tortfeasor and his insurance company. The agreement, however, contains broad language ostensibly releasing all potential tortfeasors from liability. We now consider whether this language bars the plaintiff’s claims against a tortfeasor who was not a party to the release. Based on the uncontroverted evidence at trial, we conclude it does not.

Second, the plaintiff obtains a judgment more favorable than his offer of compromise under Code of Civil Procedure section 998 (section 998 offer), and is entitled to interest on the judgment from the date of the offer to the date of satisfaction of judgment pursuant to Civil Code section 3291. We now consider whether the plaintiff is entitled to interest on the prejudgment portion of the interest accrued under Civil Code section 3291, i.e., compound interest or interest on interest. We conclude he is not.

Background

John Hess was a passenger in a Ford pickup truck on Christmas morning. At an intersection, a car driven by Charles Phillips struck the Ford truck, and *521 the truck rolled over at least one and a half times. Hess…

I concur in the majority’s opinion. I write separately to express a different view as to the analysis of the issue pertaining to the release. Unlike the majority, which applies the defense of mutual mistake, I would analyze this issue under the third party beneficiary theory. Although here the majority and I reach the same result on this issue, in a future case the mode of analysis could make a difference because it affects the allocation of the burden of proof.

*534 I.

Plaintiff John Hess was a passenger in a Ford pickup truck that was hit by a car driven by Charles Phillips. Plaintiff’s injuries rendered him a paraplegic. Plaintiff settled his claim against Phillips and the latter’s insurance company, Continental Insurance Company (Continental), for the policy limit of $15,000. Plaintiff signed Continental’s one-page release form, agreeing to “forever discharge” his claims against Phillips, Continental, and “all other persons, firms, corporations, associations or partnerships,” the phrase at issue here. The Ford Motor Company (Ford) was not a party to the release.

At trial, plaintiff and the attorney who had represented him in the settlement with Phillips and Continental…