H-803                _______________________________________________

                                                    HOUSE BILL NO. 476

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Appelwick, McMullen and Niemi

Read first time 2/4/85 and referred to Committee on Judiciary.

AN ACT Relating to contributory fault; and amending RCW 4.22.060.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 14, chapter 27, Laws of 1981 and RCW 4.22.060 are each amended to read as follows:

          (1) A party prior to entering into a release, covenant not to sue, covenant not to enforce judgment, or similar agreement with a claimant shall give five days' written notice of such intent to all other parties and the court.  The court may for good cause authorize  a shorter notice period.  The notice shall contain a copy of the proposed agreement.  A hearing shall be held on the issue of the reasonableness of the amount to be paid with all parties afforded an opportunity to present evidence.  A determination by the court that the amount to be paid is reasonable must be secured.  If an agreement was entered into prior to the filing of the action, a hearing on the issue of the reasonableness of the amount paid at the time it was entered into may be held at any time prior to final judgment upon motion of a party.

          (2) A  release, covenant not to sue, covenant not to enforce judgment, or similar agreement entered into by a claimant and a person liable, or an award under chapter 7.06 RCW which applies to a claimant and a person liable, discharges that person from all liability for contribution, but it does not discharge any other persons liable upon the same claim unless it so provides.  However, the claim of the releasing person against other persons is reduced by the amount paid pursuant to the agreement unless the amount paid was unreasonable at the time of the agreement in which case the claim shall be reduced by an amount determined by the court to be reasonable, and the claim against other persons of a claimant subject to an award under chapter 7.06 RCW is reduced by the amount paid under the award.

          (3) A determination that the amount paid for a release, covenant not to sue, covenant not to enforce judgment, or similar agreement was unreasonable shall not affect the validity of the agreement between the released and releasing persons nor shall any adjustment be made in the amount  paid between the parties to the agreement.