MBE Rules · Remedies
Equitable Indemnity
Equitable indemnity (Cal.)
The rule
American Motorcycle allows comparative partial indemnity among joint tortfeasors; a good-faith settlement under CCP § 877.6 bars further indemnity claims against the settling defendant.
In plain English
Equitable indemnity allows a party who has paid more than their fair share of damages to seek reimbursement from other joint tortfeasors. If a defendant settles in good faith, they cannot be held liable for further indemnity claims from the other defendants involved in the same incident.
Worked example
Two drivers, A and B, are in a car accident caused by both of their negligence. Driver A settles with the injured party for $50,000, believing they are primarily at fault. Under equitable indemnity, Driver B cannot later seek reimbursement from Driver A for any part of the settlement since A's settlement was made in good faith.
Memory hook
Settle in good faith, and you're off the hook!
The trap
Exams may present scenarios where students misinterpret the nature of a settlement, thinking it affects liability rather than indemnity. Watch for questions that blur the lines between liability and indemnity claims.
How examiners test it
This rule often appears in questions involving multiple tortfeasors and settlements, testing your understanding of how good-faith settlements impact indemnity claims among defendants.
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