Opinion ID: 2591383
Heading Depth: 2
Heading Rank: 3

Heading: Settlement Offsets

Text: To reach its holding that a damage award that is offset to zero constitutes a net monetary recovery, the Wakefield majority also relied on the broad conclusion that `[s]ettlements by other parties and corresponding offsets do not affect a prevailing party determination.' ( Wakefield, supra, 145 Cal.App.4th at p. 982, quoting Great Western, supra, 58 Cal.App.4th at p. 613.) Great Western, however, dealt with a different category of prevailing partya cross-defendant in whose favor a cross-complaint is dismissed. ( Great Western, supra, 58 Cal.App.4th at p. 613; see § 1032(a)(4) [prevailing party includes a defendant in whose favor a dismissal is entered]; id., subd. (a)(2) [`defendant' includes a cross-defendant]; see Crib Retaining Walls, Inc. v. NBS/Lowry, Inc. (1996) 47 Cal.App.4th 886, 890 [54 Cal.Rptr.2d 850].) And Great Western did not concern the effect of settlement proceeds under section 877 on a prevailing party determination. (See Great Western, supra, 58 Cal.App.4th at p. 614 [good faith settlement dismissal of a cross-complaint under § 877.6].) Thus, at the very least, Great Western 's observation that settlement offsets do not affect a prevailing party determination is strictly dicta. Moreover, we conclude that this observation is overly broad in that the cases Great Western relies on Zamora, Pirkig, and Syverson dealt with specific categories of prevailing party under section 1032, including one that has been eliminated, and as such, their holdings do not necessarily extend to all categories defining a prevailing party. Based on the foregoing, we conclude that the Wakefield majority erred by misinterpreting the plain language of net monetary recovery (§ 1032(a)(4)) (see, ante, at p. 1334), and by concluding that settlement offsets do not otherwise affect whether a party has such a net monetary recovery. As noted, we disapprove of Wakefield, supra, 145 Cal.App.4th 963, to the extent it is inconsistent with this opinion. [4]