Pro tanto reduction subtracts the dollar amount paid, while proportionate share reduction subtracts the settling party's share of responsibility. The method materially affects non-settling defendants' exposure.
Courts select the method absent statutory direction.
Alternative Names:
Antitrust Settlement Allocation|Judgment Reduction (Antitrust)
Why it Matters?
Proportionate share reduction protects non-settling defendants against low settlements by settling parties, since a defendant that settled cheaply reduces the judgment by its full responsibility share rather than by the discounted amount paid, which removes the incentive for plaintiffs to settle cheaply with major participants. Advocating for proportionate share early, before settlements occur, is the effective timing.
Frequently Confused with
Related terms
Frequently asked questions
Which method protects non-settling defendants?
When should the method be addressed?
