US-New YorkWhat is General Obligations Law § 15-108 regarding settling with one defendant?
General Obligations Law § 15-108 limits a plaintiff’s ability to recover damages from non-settling defendants after settling with one defendant, by reducing the verdict by the settlement amount or the settling defendant’s equitable share—whichever is greater.
What the Law Says
New York’s General Obligations Law § 15-108 establishes rules for how settlements with one tortfeasor affect liability of others in personal injury, property damage, or wrongful death cases.
If a plaintiff settles with one defendant, the court must reduce any verdict against remaining defendants by either (1) the amount of the settlement, or (2) the settling defendant’s equitable share of the total liability — whichever is greater.
This prevents double recovery and ensures fairness among joint tortfeasors. The law also bars any claim for contribution or indemnity by a non-settling defendant against the settling defendant — even if the settlement was made in bad faith.
The settling plaintiff must give written notice of the settlement to all other parties within 30 days. Failure to do so doesn’t invalidate the settlement but may affect the application of the reduction rule.
Statutory TextUpon a determination that a release or covenant not to sue or not to enforce judgment has been given in good faith to one of two or more persons liable in tort for the same injury… the claim of the released person against the other tortfeasors for contribution is extinguished.
— General Obligations Law § 15-108(a) — Effect of release
Statutory TextThe amount of the release or covenant not to sue or not to enforce judgment shall be disclosed to the court and the jury, and the verdict shall be reduced by the greater of (i) the amount stipulated in the release or covenant not to sue or not to enforce judgment, or (ii) the amount of the released person's equitable share of the damages.
— General Obligations Law § 15-108(b) — Reduction of verdict
Statutory TextThe plaintiff shall serve written notice of the settlement upon all other parties within thirty days after the settlement is executed.
— General Obligations Law § 15-108(c) — Notice requirement
What to Do
Ensure any settlement agreement explicitly states it is made in 'good faith' under GOL § 15-108.
Serve written notice of the settlement on all other parties within 30 days.
Disclose the settlement amount to the court and jury before verdict.
Object promptly if opposing counsel fails to apply the proper reduction under § 15-108(b).
Do not seek contribution from a settling defendant — such claims are statutorily barred.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.