Thomas v. Chrysler Group LLC
2:14-cv-00671
D. Nev.Aug 15, 2016Background
- Plaintiff Damion L. Thomas sued following injuries sustained while retrieving a vehicle for defendant Carol M. Douglass on September 23, 2013.
- Carol M. Douglass moved for a determination that her settlement with Thomas was made in good faith under Nevada Revised Statute § 17.245 and for an order barring further contribution or indemnity claims against her.
- The proposed settlement amount was $35,000.
- The court applied Nevada precedent and the multi-factor test used to assess "good faith" settlements (amount paid, allocation, insurance limits, defendant’s financial condition, and absence of collusion or fraud).
- The court found no evidence of collusion or fraud and determined the settlement amount reasonably reflected Douglass’s proportionate share of liability.
- The court ordered the settlement declared in good faith under NRS 17.245, barred further contribution/equitable indemnity claims against Douglass, and directed the clerk to close the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement between Thomas and Douglass is a "good faith" settlement under NRS 17.245, thereby barring further contribution or indemnity claims against Douglass | The $35,000 settlement is a proper resolution and should be approved as good faith | The settlement is within Douglass’s proportionate share, non-collusive, reasonable, and thus entitled to protection under NRS 17.245 | The court held the $35,000 settlement is in good faith, found no collusion or fraud, and barred further contribution/equitable indemnity claims against Douglass |
Key Cases Cited
- Veliscol Chem. Corp. v. Davidson, 811 P.2d 561 (Nev. 1991) (noting NRS 17.245 provides little guidance and courts apply multi-factor good-faith test)
- In re MGM Hotel Fire Litig., 570 F. Supp. 913 (D. Nev.) (articulating factors used to evaluate good-faith settlements under NRS 17.245)
- River Garden Farms, Inc. v. Superior Court, 26 Cal. App. 3d 986 (discussing factors for assessing collusion and fairness in settlements)
