A pierringer agreement is a legal settlement agreement that allows a defendant in a multi-party lawsuit to settle with one or more plaintiffs and release them from any further liability. The agreement is named after the 1970 case Pierringer v. Hoger, in which the court approved such an agreement.
The key element of a pierringer agreement is that it allows the defendant to shift some or all of the liability to the non-settling defendants. This means that if the plaintiff agrees to settle with the defendant, the plaintiff cannot pursue any further claims against that defendant, but can still pursue claims against the remaining defendants. The non-settling defendants are then held responsible for any damages that are not covered by the settlement.
Third-party liability in pierringer agreements refers to the liability of the non-settling defendants. It is important to note that the non-settling defendants are not automatically released from all liability. Instead, they are only responsible for the portion of liability that is not covered by the settlement. This means that if the plaintiff settles for a certain amount, the non-settling defendants are only responsible for any damages beyond that amount.
Pierringer agreements can be beneficial for both plaintiffs and defendants. For plaintiffs, it allows them to receive compensation without having to wait for a lengthy trial or risk receiving nothing if they lose. For defendants, it allows them to limit their liability and potentially avoid a larger settlement or judgement.
However, pierringer agreements can also be complicated and difficult to negotiate. It is important for all parties to have experienced legal counsel to ensure that the agreement is fair and legally binding.
In conclusion, pierringer agreements and third-party liability play important roles in multi-party lawsuits. While they can be beneficial for both plaintiffs and defendants, they require careful consideration and negotiation to ensure a fair settlement for all parties involved.