How have courts interpreted Section 877 of the California Motor Vehicle Accident Benefits Act?

First, courts interpret 877 as reflecting a policy in favor of settlement. The clear intent of 877 is to allow a defendant who settles in good faith a claim against him to be forever discharged from liability by contribution or otherwise. Stambaugh v. Superior Court, 62 Cal.App.3d 231, 235, 132 Cal.Rptr. 843 (1976). Recognizing that a plaintiff has the power to preserve claims against those defendants with the greatest ability to pay or the least public sympathy, the courts have emphasized the requirement that a settlement with codefendants be a "good faith" release from liability. See,

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