Franck v. Polaris E-Z Go Div. of Textron, Inc.
California Court of Appeal
204 Cal. Rptr. 321 (1984)
Franck (plaintiff), injured in a snowmobile accident, sued the manufacturer Polaris and other defendants; before trial she settled with the driver, owner, and seller, including a $215,000 structured settlement with the Weichers paid partly upfront and partly over time through 2000, funded by a $75,000 annuity. Franck then won $300,000 against the remaining defendant, Polaris, at trial. Under California's setoff statute for settling joint tortfeasors, Franck argued Polaris's judgment should be reduced only by the present cash value of the structured settlement payments, while Polaris argued for a dollar-for-dollar reduction by the full $215,000 nominal total; the trial court sided with Polaris.
Whether, under California law, a nonsettling joint tortfeasor's judgment must be reduced by the present cash value of a co-defendant's structured settlement payments, rather than by their full nominal future total.