Change provisions relating to releases, covenants not to sue, or similar agreements on joint and several liability
Summary
LB416 would revise Nebraska civil procedure law governing the effect of a release, covenant not to sue, or similar settlement agreement when multiple parties may be liable for the same injury or claim. Under the bill, a settlement with one liable person would discharge that person from liability to the claimant, but would not automatically release other potentially liable parties unless the agreement expressly says so. The claimant’s claim against the remaining parties would be reduced by the released person’s share of the obligation, as determined by the trier of fact.
The bill also states that such an agreement would prevent the released person from being made a party to the action, or would support dismissal if the person is already in the case, while preserving consideration of that person’s negligence under the relevant comparative fault rules. In addition, the bill clarifies that a release or covenant not to sue does not eliminate the joint and several liability of other persons liable on the same claim. The bill repeals the existing section it replaces.
Impact
LB416 would change how settlements with one defendant affect claims against other defendants in Nebraska tort cases, especially in cases involving joint and several liability. It would preserve claims against non-settling parties unless the settlement agreement expressly releases them, and it would require any judgment or claim reduction to reflect the released party’s share of fault. This would affect plaintiffs, defendants, insurers, and courts handling multi-party negligence and injury litigation by clarifying settlement consequences and party dismissal rules.
Sentiment
The available record shows no committee transcript, recorded votes, or other discussion, so there is no documented debate to gauge support or opposition. The bill’s final status as indefinitely postponed suggests it did not advance, but the provided materials do not explain whether that was due to policy disagreement, procedural timing, or other legislative priorities.
Contention
The main policy issue raised by the bill’s text is the treatment of non-settling defendants in cases where one defendant settles. Supporters would likely favor the clearer rule that a settlement with one party does not automatically release others and that fault-based reductions apply. Potential opponents could be concerned that the bill affects settlement leverage, alters exposure in joint and several liability cases, or changes how fault is allocated among parties. Because there are no transcripts, no specific legislator, committee member, or stakeholder positions are identified in the record provided.