Opinion ID: 2121781
Heading Depth: 1
Heading Rank: 9

Heading: The Ford Settlement

Text: The issue as to what, if any, setoff to which defendant is entitled from the Ford settlement poses a different question. Although plaintiff brought suit against Ford for both injuries, the settlement agreement appears to provide that the money paid was for the first injury only, and not the second. However, the settlement released Ford not only for the first injury, but for the second as well. Defendant argues that plaintiff has manipulated the Ford release to preclude setoff against defendant. Plaintiff responds that the settlement was found to be in good faith and that none of the money was for the second injury. Thus, according to plaintiff, there should be no setoff. While the Ford settlement appears to allocate the entire amount received to the first injury, the settlement also releases Ford for the second injury. Thus, at issue is what consideration Ford paid for the release of the second injury. Again, the consideration paid for the release of Ford for the second injury is the amount paid to plaintiff for Susanne's injuries prior to the negligence of defendant. Thus, under the Act, defendant is entitled to a setoff of the amount allocated in the release to the injury, or the consideration paid for the release, whichever is greater. The greater amount here is the consideration paid for the release. Plaintiff argues, however, that public policy in this State is to encourage voluntary settlements, and that the full intent of the Ford release should be given effect to effectuate that policy. However, we believe that the Act is clear and that plaintiff could have avoided this result by properly drawing the settlement agreements and apportioning the amount received from Ford between the first and second injury.