N.C. Gen. Stat. » Chapter 1B
NC General Statutes

N.C. Gen. Stat. § 1B-4 (2026)

Release or covenant not to sue

✓ current as of July 2026
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When a release or a covenant not to sue or not to enforce judgment is given in good faith to one of two or more persons liable in tort for the same injury or the same wrongful death:

(1) It does not discharge any of the other tort-feasors from liability for the injury or wrongful death unless its terms so provide; but it reduces the claim against the others to the extent of any amount stipulated by the release or the covenant, or in the amount of the consideration paid for it,  whichever is the greater; and,

(2) It discharges the tort-feasor to whom it is given from all liability for contribution to any other tort-feasor. (1967, c. 847, s. 1.)

 

Notes of Decisions
Cited in 26 cases (4 in the last 5 years), 1986–2023 · leading case: Yates v. New South Pizza, Ltd., 412 S.E.2d 666 (N.C. 1992).
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Yates v. New South Pizza, Ltd., 412 S.E.2d 666 (N.C. 1992). · cites it 70× “N.C.G.S. § 1B-4 (1983). The question of whether this provision applies to vicarious liability in the master-servant context is one of first impression for this Court.”
Brown v. Flowe, 507 S.E.2d 894 (N.C. 1998). · cites it 11× “The question presented is how to reduce a claim against a nonsettling tort-feasor under N.C.G.S. § 1B-4 when prejudgment interest under N.”
Sterling v. Gil Soucy Trucking, Ltd., 552 S.E.2d 674 (N.C. Ct. App. 2001). · cites it 20× “Next, Soucy Trucking and Caron argue that the trial court erred in its 23 May 2000 and 6 July 2000 orders in concluding that the post-judgment settlements between the plaintiff and the third-party defendants (Jennifer and Clayton Lowman and West) constitute a full release given…”
Best v. Ford Motor Co., 557 S.E.2d 163 (N.C. Ct. App. 2001). · cites it 6× “See N.C.G.S. § 1B-4 (1999). Under the Act, a release or covenant not to sue that is given in good faith to one or more persons liable for the same injury does not discharge other tortfeasors, unless otherwise provided.”
Troyer v. Adams, 77 P.3d 83 (Haw. 2003). · cites it 2× “2d at 62 (instructing trial courts to consider the "totality of the circumstances" in determining whether a settlement is given in good faith for purposes of N.C. Gen.Stat. Ann. § 1B-4 (LexisNexis 2001) [29] ); Mahathiraj, 617 N.”
Boykin v. Kim, 620 S.E.2d 707 (N.C. Ct. App. 2005). · cites it 6× “Kim, to set-off, any remaining balance on the judgment was the proper amount for which Dr.”
Finch v. Covil Corp., 388 F. Supp. 3d 593 (M.D.N.C. 2019). · cites it 2× “for and on account of any injury or damage should be held for a credit on *633 the total recovery in any action for the same injury or damage"); see also N.C. Gen. Stat. § 1B-4. The Court withheld entry of an amended judgment pending resolution of the motion resolved in this…”
Cox v. Robert C. Rhein Interest, Inc., 397 S.E.2d 358 (N.C. Ct. App. 1990). · cites it 6× “Defendant Rhein contends the trial court erred in entering judgment and denying defendant’s motion to modify or amend judgment pursuant to N. C. Gen. Stat. § 1B-4(1). Defendant contends G.”
Med. Mut. Ins. Co. of NC v. Mauldin, 529 S.E.2d 697 (N.C. Ct. App. 2000). · cites it 10× “shall be binding as among such defendants in determining their right to contribution.”
Harris v. Miller, 438 S.E.2d 731 (N.C. 1994). · cites it 3× “N.C.G.S. § 1B-4. In the recent case of Yates v.”
Duke Univ. v. St. Paul Mercury Ins., 384 S.E.2d 36 (N.C. Ct. App. 1989). · cites it 2× “Paul since the CCC payment was reimbursement for legal fees that were not covered by the St.”
Bridgestone/Firestone, Inc. v. Ogden Plant Maint. Co. of North Carolina, 548 S.E.2d 807 (N.C. Ct. App. 2001). · cites it 2× “Defendant Ogden contends N.C. Gen.Stat. § 1B-4 (1999) bars plaintiff from seeking contribution.”
Show all 26 citing cases →
— N.C. Gen. Stat. § 1B-4(1) — 12 cases
Yates v. New South Pizza, Ltd., 412 S.E.2d 666 (N.C. 1992). “N.C.G.S. § 1B-4 (1983). The question of whether this provision applies to vicarious liability in the master-servant context is one of first impression for this Court.”
Cox v. Robert C. Rhein Interest, Inc., 397 S.E.2d 358 (N.C. Ct. App. 1990). “Defendant Rhein contends the trial court erred in entering judgment and denying defendant’s motion to modify or amend judgment pursuant to N. C. Gen. Stat. § 1B-4(1). Defendant contends G.”
Duke Univ. v. St. Paul Mercury Ins., 384 S.E.2d 36 (N.C. Ct. App. 1989). “Paul since the CCC payment was reimbursement for legal fees that were not covered by the St.”
Boykin v. Kim, 620 S.E.2d 707 (N.C. Ct. App. 2005). “Kim, to set-off, any remaining balance on the judgment was the proper amount for which Dr.”
J. Gilliam v. Leroy Allen, 62 F.4th 829 (4th Cir. 2023).
— N.C. Gen. Stat. § 1B-4(2) — 2 cases
Sterling v. Gil Soucy Trucking, Ltd., 552 S.E.2d 674 (N.C. Ct. App. 2001). “Next, Soucy Trucking and Caron argue that the trial court erred in its 23 May 2000 and 6 July 2000 orders in concluding that the post-judgment settlements between the plaintiff and the third-party defendants (Jennifer and Clayton Lowman and West) constitute a full release given…”
Boykin v. Kim, 620 S.E.2d 707 (N.C. Ct. App. 2005). “Kim, to set-off, any remaining balance on the judgment was the proper amount for which Dr.”
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