§ 8.01-35.1. Effect of release or covenant not to sue in respect to liabilityand contribution.
A. When a release or a covenant not to sue is given in good faith to one oftwo or more persons liable for the same injury to a person or property, orthe same wrongful death:
1. It shall not discharge any other person from liability for the injury,property damage or wrongful death unless its terms so provide; but any amountrecovered against the other person or any one of them shall be reduced by anyamount stipulated by the covenant or the release, or in the amount of theconsideration paid for it, whichever is the greater. In determining theamount of consideration given for a covenant not to sue or release for asettlement which consists in whole or in part of future payment or payments,the court shall consider expert or other evidence as to the present value ofthe settlement consisting in whole or in part of future payment or payments.A release or covenant not to sue given pursuant to this section shall not beadmitted into evidence in the trial of the matter but shall be considered bythe court in determining the amount for which judgment shall be entered; and
2. It shall discharge the person to whom it is given from all liability forcontribution to any other person liable for the same injury to person orproperty or the same wrongful death.
B. A person who enters into a release or covenant not to sue with a claimantis not entitled to recover by way of contribution from another person whoseliability for the injury, property damage or wrongful death is notextinguished by the release or covenant not to sue, nor in respect to anyamount paid by the person which is in excess of what was reasonable.
C. For the purposes of this section, a covenant not to sue shall include any"high-low" agreement whereby a party seeking damages for injury to a personor property, or for wrongful death, agrees to accept as full satisfaction forany judgment no more than one sum certain and the party or parties from whomthe damages are sought agree to pay no less than another sum certainregardless of whether any judgment rendered at trial is higher or lower thanthe respective sums certain set forth in the agreement and whereby such partyprovides notice to all of the other parties of the terms of such "high-low"agreement immediately after such agreement is reached.
D. A release or covenant not to sue given pursuant to this section shall besubject to the provisions of §§ 8.01-55 and 8.01-424.
E. This section shall apply to all such covenants not to sue executed on orafter July 1, 1979, and to all releases executed on or after July 1, 1980.This section shall also apply to all oral covenants not to sue and oralreleases agreed to on or after July 1, 1989, provided that any cause ofaction affected thereby accrues on or after July 1, 1989. A release orcovenant not to sue need not be in writing where parties to a pending actionstate in open court that they have agreed to enter into such release orcovenant not to sue and have agreed further to subsequently memorialize thesame in writing.
(1979, c. 697; 1980, c. 411; 1982, c. 196; 1983, c. 181; 1985, c. 330; 1989,c. 681; 2000, c. 351; 2007, c. 443.)
§ 8.01-35.1. Effect of release or covenant not to sue in respect to liabilityand contribution.
A. When a release or a covenant not to sue is given in good faith to one oftwo or more persons liable for the same injury to a person or property, orthe same wrongful death:
1. It shall not discharge any other person from liability for the injury,property damage or wrongful death unless its terms so provide; but any amountrecovered against the other person or any one of them shall be reduced by anyamount stipulated by the covenant or the release, or in the amount of theconsideration paid for it, whichever is the greater. In determining theamount of consideration given for a covenant not to sue or release for asettlement which consists in whole or in part of future payment or payments,the court shall consider expert or other evidence as to the present value ofthe settlement consisting in whole or in part of future payment or payments.A release or covenant not to sue given pursuant to this section shall not beadmitted into evidence in the trial of the matter but shall be considered bythe court in determining the amount for which judgment shall be entered; and
2. It shall discharge the person to whom it is given from all liability forcontribution to any other person liable for the same injury to person orproperty or the same wrongful death.
B. A person who enters into a release or covenant not to sue with a claimantis not entitled to recover by way of contribution from another person whoseliability for the injury, property damage or wrongful death is notextinguished by the release or covenant not to sue, nor in respect to anyamount paid by the person which is in excess of what was reasonable.
C. For the purposes of this section, a covenant not to sue shall include any"high-low" agreement whereby a party seeking damages for injury to a personor property, or for wrongful death, agrees to accept as full satisfaction forany judgment no more than one sum certain and the party or parties from whomthe damages are sought agree to pay no less than another sum certainregardless of whether any judgment rendered at trial is higher or lower thanthe respective sums certain set forth in the agreement and whereby such partyprovides notice to all of the other parties of the terms of such "high-low"agreement immediately after such agreement is reached.
D. A release or covenant not to sue given pursuant to this section shall besubject to the provisions of §§ 8.01-55 and 8.01-424.
E. This section shall apply to all such covenants not to sue executed on orafter July 1, 1979, and to all releases executed on or after July 1, 1980.This section shall also apply to all oral covenants not to sue and oralreleases agreed to on or after July 1, 1989, provided that any cause ofaction affected thereby accrues on or after July 1, 1989. A release orcovenant not to sue need not be in writing where parties to a pending actionstate in open court that they have agreed to enter into such release orcovenant not to sue and have agreed further to subsequently memorialize thesame in writing.
(1979, c. 697; 1980, c. 411; 1982, c. 196; 1983, c. 181; 1985, c. 330; 1989,c. 681; 2000, c. 351; 2007, c. 443.)
§ 8.01-35.1. Effect of release or covenant not to sue in respect to liabilityand contribution.
A. When a release or a covenant not to sue is given in good faith to one oftwo or more persons liable for the same injury to a person or property, orthe same wrongful death:
1. It shall not discharge any other person from liability for the injury,property damage or wrongful death unless its terms so provide; but any amountrecovered against the other person or any one of them shall be reduced by anyamount stipulated by the covenant or the release, or in the amount of theconsideration paid for it, whichever is the greater. In determining theamount of consideration given for a covenant not to sue or release for asettlement which consists in whole or in part of future payment or payments,the court shall consider expert or other evidence as to the present value ofthe settlement consisting in whole or in part of future payment or payments.A release or covenant not to sue given pursuant to this section shall not beadmitted into evidence in the trial of the matter but shall be considered bythe court in determining the amount for which judgment shall be entered; and
2. It shall discharge the person to whom it is given from all liability forcontribution to any other person liable for the same injury to person orproperty or the same wrongful death.
B. A person who enters into a release or covenant not to sue with a claimantis not entitled to recover by way of contribution from another person whoseliability for the injury, property damage or wrongful death is notextinguished by the release or covenant not to sue, nor in respect to anyamount paid by the person which is in excess of what was reasonable.
C. For the purposes of this section, a covenant not to sue shall include any"high-low" agreement whereby a party seeking damages for injury to a personor property, or for wrongful death, agrees to accept as full satisfaction forany judgment no more than one sum certain and the party or parties from whomthe damages are sought agree to pay no less than another sum certainregardless of whether any judgment rendered at trial is higher or lower thanthe respective sums certain set forth in the agreement and whereby such partyprovides notice to all of the other parties of the terms of such "high-low"agreement immediately after such agreement is reached.
D. A release or covenant not to sue given pursuant to this section shall besubject to the provisions of §§ 8.01-55 and 8.01-424.
E. This section shall apply to all such covenants not to sue executed on orafter July 1, 1979, and to all releases executed on or after July 1, 1980.This section shall also apply to all oral covenants not to sue and oralreleases agreed to on or after July 1, 1989, provided that any cause ofaction affected thereby accrues on or after July 1, 1989. A release orcovenant not to sue need not be in writing where parties to a pending actionstate in open court that they have agreed to enter into such release orcovenant not to sue and have agreed further to subsequently memorialize thesame in writing.
(1979, c. 697; 1980, c. 411; 1982, c. 196; 1983, c. 181; 1985, c. 330; 1989,c. 681; 2000, c. 351; 2007, c. 443.)
