Board of Education of McDowell County v. Zando, Martin & Milstead, Inc.

Summary

The Supreme Court of Appeals of West Virginia held that a defendant who makes a good faith settlement with the plaintiff before a judicial determination of liability is discharged from any liability for contribution, affirming dismissal of ZMM's cross-claims against settling co-defendants Corte and Nutting. The court also held that defendants against whom a verdict is rendered are entitled to a pro tanto, dollar-for-dollar reduction of the verdict for such settlements, even where the plaintiff asserted a contract theory against one defendant and negligence against others, because the Board suffered a single indivisible loss. The court further held the Board was entitled to prejudgment interest on its contract judgment under W.Va. Code, 56-6-27, while finding no reversible error in the denial of a mistrial or in the evidentiary rulings. The judgment was affirmed in part, reversed in part, and remanded for entry of judgment reflecting the settlement credit and prejudgment interest.