Legal Definitions - Pierringer release

A Pierringer release is a specific type of settlement agreement used in lawsuits involving multiple defendants. It allows a plaintiff (the person bringing the lawsuit) to settle their claim with one or more, but not all, of the defendants, while still pursuing the case against the remaining defendants.

Here's how it works:

• The plaintiff agrees to release the settling defendant(s) from any further liability in the case.
• Crucially, the plaintiff also agrees that any judgment they might obtain against the remaining non-settling defendants will be reduced by the proportionate share of fault that a court or jury ultimately attributes to the released defendant(s).
• This means the non-settling defendants are only responsible for their own determined share of the damages, and they are protected from having to pay for the fault of the parties who settled. The plaintiff, in turn, bears the risk if they settled with a released defendant for an amount less than that defendant's actual proportionate share of fault.

This type of release is often used to streamline complex litigation, allowing some parties to exit the lawsuit while ensuring fairness to the remaining defendants regarding their potential liability.

Examples of a Pierringer Release in Action:

• Example 1: Multi-Vehicle Collision

  Imagine a scenario where a driver, Sarah, is injured in a complex three-car accident involving Driver A, Driver B, and herself. Sarah sues both Driver A and Driver B, alleging their negligence caused her injuries. Driver A, wanting to avoid a lengthy trial, offers Sarah a settlement. Sarah accepts Driver A's offer and signs a Pierringer release with Driver A. This means Sarah releases Driver A from the lawsuit. However, Sarah continues her claim against Driver B. If the case goes to trial and a jury determines that Sarah's total damages are $100,000, and they find Driver A was 40% at fault and Driver B was 60% at fault, Driver B will only be responsible for paying $60,000 (their 60% share). Sarah cannot seek Driver A's 40% share from Driver B, even if the settlement amount she received from Driver A was less than $40,000. The Pierringer release ensures Driver B is only liable for their own proportionate share of the damages.

• Example 2: Defective Product Lawsuit

  A consumer, Mark, purchases a new appliance that malfunctions and causes significant property damage. Mark sues both the appliance Manufacturer and the Retailer who sold him the product, alleging defects and negligence. The Retailer, eager to maintain customer goodwill and avoid litigation costs, offers Mark a settlement. Mark accepts and signs a Pierringer release with the Retailer, removing them from the lawsuit. Mark continues his claim against the Manufacturer. If a court later finds that Mark's total damages are $50,000, and determines the Retailer was 10% at fault for improper installation advice and the Manufacturer was 90% at fault for a design flaw, the Manufacturer will only be liable for $45,000 (their 90% share). The Pierringer release prevents Mark from trying to recover the Retailer's 10% share from the Manufacturer, regardless of how much he settled for with the Retailer.