Leung v. Verdugo Hills Hospital

Aidan Leung (plaintiff) suffered brain damage shortly after birth and sued his pediatrician and the hospital (defendants). Before trial, Leung settled with the pediatrician for the pediatrician's $1 million insurance-policy limit, but the trial court declined to declare the settlement made in good faith, finding $1 million far less than the pediatrician's likely share of liability. A jury awarded Leung roughly $15 million, allocating 55 percent fault to the pediatrician, 40 percent to the hospital, and 5 percent to Leung's parents; because the defendants were jointly and severally liable, the hospital alone became responsible for 95 percent of the $14 million still owed after the settlement credit. On appeal, the court of appeal held that under the common-law release rule, Leung's settlement with the pediatrician had fully released the hospital too, leaving Leung with nothing further. Leung sought review.