A. When a release or a covenant not to sue is given in good faith to one of two or more persons liable for the same injury to a person or property, or the same wrongful death:
1. It shall not discharge any other person from liability for the injury, property damage or wrongful death unless its terms so provide; but any amount recovered against the other person or any one of them shall be reduced by any amount stipulated by the covenant or the release, or in the amount of the consideration paid for it, whichever is the greater. In determining the amount of consideration given for a covenant not to sue or release for a settlement which consists in whole or in part of future payment or payments, the court shall consider expert or other evidence as to the present value of the settlement consisting in whole or in part of future payment or payments. A release or covenant not to sue given pursuant to this section shall not be admitted into evidence in the trial of the matter but shall be considered by the court in determining the amount for which judgment shall be entered; and
2. It shall discharge the person to whom it is given from all liability for contribution to any other person liable for the same injury to person or property or the same wrongful death.
B. A person who enters into a release or covenant not to sue with a claimant is not entitled to recover by way of contribution from another person whose liability for the injury, property damage or wrongful death is not extinguished by the release or covenant not to sue, nor in respect to any amount paid by the person which is in excess of what was reasonable.
C. For the purposes of this section, a covenant not to sue shall include any "high-low" agreement whereby a party seeking damages for injury to a person or property, or for wrongful death, agrees to accept as full satisfaction for any judgment no more than one sum certain and the party or parties from whom the damages are sought agree to pay no less than another sum certain regardless of whether any judgment rendered at trial is higher or lower than the respective sums certain set forth in the agreement and whereby such party provides notice to all of the other parties of the terms of such "high-low" agreement immediately after such agreement is reached.
D. A release or covenant not to sue given pursuant to this section shall be subject to the provisions of §§ 8.01-55 and 8.01-424.
E. This section shall apply to all such covenants not to sue executed on or after July 1, 1979, and to all releases executed on or after July 1, 1980. This section shall also apply to all oral covenants not to sue and oral releases agreed to on or after July 1, 1989, provided that any cause of action affected thereby accrues on or after July 1, 1989. A release or covenant not to sue need not be in writing where parties to a pending action state in open court that they have agreed to enter into such release or covenant not to sue and have agreed further to subsequently memorialize the same in writing.
1979, c. 697; 1980, c. 411; 1982, c. 196; 1983, c. 181; 1985, c. 330; 1989, c. 681; 2000, c. 351; 2007, c. 443.
Notes of Decisions
Potomac Hosp. Corp. v. Dillon, 329 S.E.2d 41 (Va. 1985).
· cites it 82× “00 "pursuant to Va.Code § 8.01-35.1 (1983 Cum.Supp.)." In oral argument on the motion, counsel for the hospital said: Your Honor, you have a verdict of a million, two, which should be reduced to $750,000, because that's what the statute says is recoverable.”
William H. Gordon Assocs., Inc. v. Heritage Fellowship, 784 S.E.2d 265 (Va. 2016).
· cites it 28× “ASSIGNMENT OF ERROR 4 In its fourth assignment of error, Gordon contends that under common law, the $200,000 settlement agreement between Heritage and PSI operated as a complete release of Heritage's claim against Gordon because it involved the same injury-the failed rain tank.”
Tazewell Oil Co. v. United Virginia Bank/Crestar Bank, 413 S.E.2d 611 (Va. 1992).
· cites it 27× “SETTLEMENTS OF OTHER CASES UVB asserts that Tazewell’s settlements with M&M and Grundy do not meet the requirements of Code § 8.01-35.1, the covenant not to sue statute, and, therefore, are subject to the common-law rule that release of one tortfeasor releases the other…”
Fairfax Hosp. Sys., Inc. v. Nevitt, 457 S.E.2d 10 (Va. 1995).
· cites it 54× “In this appeal from a judgment for a plaintiff in a medical malpractice case, the issues framed require us to consider (1) the statute granting a plaintiff the right to settle with one tortfeasor without releasing joint tortfeasors, Code § 8.01-35.1, and (2) the interplay of the…”
Acordia of Virginia Ins. Agency, Inc. v. Genito Glenn, L.P., 560 S.E.2d 246 (Va. 2002).
· cites it 24× “It also asserted that the provisions of Code § 8.01-35.1 required the trial court to reduce any verdict entered in favor of Genito by the amount Genito had already received in settlement of the NHBC case.”
Hayman v. Patio Prods., Inc., 311 S.E.2d 752 (Va. 1984).
· cites it 45× “In 1980, Code § 8.01-35.1 was amended to include releases as well as covenants not to sue.”
Shiflet v. Eller, 319 S.E.2d 750 (Va. 1984).
· cites it 17× “Effective July 1, 1979, the General Assembly enacted Code § 8.01-35.1, the statute in question.”
Dacotah Mktg. & Rsch., L.L.C. v. Versatility, Inc., 21 F. Supp. 2d 570 (E.D. Va. 1998).
· cites it 30× “In this instance, the parties correctly agree that Virginia substantive law governs the effect of the release, a conclusion that finds firm support in the release itself, which is captioned "Release Pursuant to Va.Code § 8.01-35.1” and which was executed in counterparts by…”
Torloni v. Com., 645 S.E.2d 487 (Va. 2007).
· cites it 23× “Torloni could not recover any damages from the Commonwealth because she had already recovered $100,000 from the joint-tortfeasor and Va.Code § 8.01-35.1 required that the $100,000 be applied to reduce any amount recovered against the Commonwealth.”
Cox v. Geary, 624 S.E.2d 16 (Va. 2006).
· cites it 10× “Cox argues that the provisions of Code § 8.01-35.1 are applicable and therefore the release of the Commonwealth did not discharge the Attorneys from their liability.”
Thurston Metals & Supply Co., Inc. v. Taylor, 339 S.E.2d 538 (Va. 1986).
· cites it 11× “Deciding the covenant-not-to-sue statute, Code § 8.01-35.1 (first enacted in 1979), was applicable, *483 the court held there had been no release of the plaintiffs claim against the corporation but that the amount of the verdict of $200,000 should be reduced by the amount paid…”
— Va. Code Ann. § 8.01-35.1(2) — 1 case
— Va. Code Ann. § 8.01-35.1(2)(B) — 1 case
— Va. Code Ann. § 8.01-35.1(A) — 9 cases
William H. Gordon Assocs., Inc. v. Heritage Fellowship, 784 S.E.2d 265 (Va. 2016).
“ASSIGNMENT OF ERROR 4 In its fourth assignment of error, Gordon contends that under common law, the $200,000 settlement agreement between Heritage and PSI operated as a complete release of Heritage's claim against Gordon because it involved the same injury-the failed rain tank.”
— Va. Code Ann. § 8.01-35.1(A)(1) — 24 cases
Tazewell Oil Co. v. United Virginia Bank/Crestar Bank, 413 S.E.2d 611 (Va. 1992).
“SETTLEMENTS OF OTHER CASES UVB asserts that Tazewell’s settlements with M&M and Grundy do not meet the requirements of Code § 8.01-35.1, the covenant not to sue statute, and, therefore, are subject to the common-law rule that release of one tortfeasor releases the other…”
William H. Gordon Assocs., Inc. v. Heritage Fellowship, 784 S.E.2d 265 (Va. 2016).
“ASSIGNMENT OF ERROR 4 In its fourth assignment of error, Gordon contends that under common law, the $200,000 settlement agreement between Heritage and PSI operated as a complete release of Heritage's claim against Gordon because it involved the same injury-the failed rain tank.”
— Va. Code Ann. § 8.01-35.1(A)(2) — 3 cases
— Va. Code Ann. § 8.01-35.1(B) — 5 cases
— Va. Code Ann. § 8.01-35.1(C) — 2 cases
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