Case Law & Settlements

Prop 51 at the Margins: Economic and Non-Economic Apportionment After B.B.

Forty years after Proposition 51, the economic/non-economic split still decides how much a single solvent defendant pays. Recent California decisions on intentional tortfeasors, settled parties, and nonparty fault show where the apportionment line holds and where it breaks.

A brass balance scale with two unevenly weighted pans resting on a wooden desk in soft light.

Every plaintiff lawyer who has tried a multi-defendant case knows the moment the verdict form matters most: the jury has found $2 million in economic damages and $3 million in non-economic damages, assigned 20 percent of fault to the one defendant with a policy and assets, and 80 percent to a bankrupt codefendant or an empty-chair nonparty. What your client actually collects turns entirely on which column the money sits in. The solvent defendant owes the full $2 million in economic damages but only $600,000 of the non-economic award. The other $2.4 million is, as a practical matter, uncollectible.

That split is the whole of Proposition 51, codified at California Civil Code section 1431.2. It left joint-and-several liability intact for economic loss and replaced it with several-only, proportionate liability for non-economic loss. The statute is short and its arithmetic is simple. The litigation forty years on is about everything the voters did not spell out: who counts in the fault pool, whether an intentional wrongdoer gets the discount, and how a pretrial settlement reshapes the judgment against whoever is left at counsel table.

What the statute actually divides

Section 1431.2 provides that in any action for personal injury, property damage, or wrongful death based on comparative fault, the liability of each defendant for non-economic damages is several only and is allocated in direct proportion to that defendant's percentage of fault. Economic damages are untouched; the common-law rule that any defendant can be held for the entire economic award survives.

The line between the two categories does the heavy lifting, and it is drawn by what the loss compensates, not by how large it is. Economic damages are objectively verifiable monetary losses: past and future medical expenses, lost earnings and earning capacity, and burial costs in a wrongful death matter. Non-economic damages compensate subjective harm — pain, suffering, disfigurement, loss of consortium, emotional distress. A seven-figure future-care number is economic and fully joint; a seven-figure pain-and-suffering number is several and shrinks to the defendant's fault share. The categorization on the special verdict form is therefore as consequential as the fault percentages, and it is worth drafting the form yourself rather than accepting the defense version.

The California Supreme Court read the statute broadly in DaFonte v. Up-Right, Inc. (1992) 2 Cal.4th 593, holding that a defendant's share of non-economic damages is reduced by the comparative fault of all actors who contributed to the injury, including nonparties and parties the plaintiff could never have sued. The constitutionality and prospective reach of the measure had already been settled in Evangelatos v. Superior Court (1988) 44 Cal.3d 1188. Between them, those cases fixed the default: the fault pie is cut among everyone who helped cause the harm, and the plaintiff absorbs the slices assigned to the insolvent and the absent.

The empty chair and nonparty fault

Because DaFonte lets defendants point at people who are not in the room, the empty-chair defense is a fixture of California PI practice. A defendant can reduce its non-economic exposure by proving that a settled party, an immune employer, a bankrupt manufacturer, or an unknown phantom contributed to the injury. The burden of proving that nonparty fault sits on the defendant asserting it, and the appellate courts have required real evidence rather than argument. Wilson v. Ritto (2003) 105 Cal.App.4th 361 refused to let a defendant allocate fault to a "phantom" actor whose negligence had not been established, declining to put an unidentified party on the verdict form without a factual foundation.

The practical lesson for the plaintiff side is that the fault pool is contestable. If the defense wants to seat an empty chair, make it carry the evidentiary weight — depose the witnesses who would establish the absent party's conduct, and move to exclude the allocation if the proof is thin. The same multi-actor accounting that governs apportionment at trial also drives how defendants value their share in coordinated and mass proceedings, a shifting visible in the allocation mechanics of the 3M earplug point-value matrix, where each defendant's exposure was a function of proportional contribution rather than a single joint pool.

Intentional tortfeasors do not get the discount

The most important recent clarification is B.B. v. County of Los Angeles (2020) 10 Cal.5th 1. The question was whether a defendant who commits an intentional tort may invoke section 1431.2 to cut its non-economic liability by the comparative fault the jury assigned to merely negligent actors. The Supreme Court said no. An intentional tortfeasor is not entitled to apportionment of non-economic damages under Prop 51; the statute's reduction is unavailable to the party whose conduct was intentional, and that defendant remains answerable for the full non-economic award.

The holding matters well beyond battery cases. In any matter with a mix of intentional and negligent conduct — a premises case involving an assault, a dram-shop scenario, an abuse claim against an institution and an individual — the intentional actor cannot shift non-economic damages onto the negligent codefendants. For plaintiffs, that is a reason to plead and prove intentional conduct where the facts support it, because a successful intentional-tort theory removes that defendant from the apportionment machinery entirely and restores full joint exposure on the pain-and-suffering award.

Settlements, set-offs, and the MICRA overlay

A pretrial settlement complicates the arithmetic because the nonsettling defendant is entitled to some credit, but the credit works differently for the two damage categories. Rashidi v. Moser (2014) 60 Cal.4th 718 addressed the interaction of Prop 51, the good-faith settlement rules, and the MICRA non-economic cap in a medical negligence case. The Court held that a nonsettling defendant's liability for non-economic damages is limited to that defendant's own proportionate share and is not reduced by the non-economic portion of a co-tortfeasor's settlement. The settlement credit instead applies against the jointly owed economic damages. The result is that economic and non-economic recoveries are accounted for on separate tracks: settlement dollars offset the joint economic obligation, while the non-economic judgment against the remaining defendant stands at that defendant's fault percentage.

Getting the set-off allocation right at the good-faith determination stage is where cases are won or lost. If a settling defendant's payment is characterized entirely as economic, it reduces the joint economic pool and leaves the nonsettling defendant's several non-economic exposure untouched. Plaintiffs negotiating sequential settlements should think about that characterization before signing, because it also interacts with lien reimbursement — the same economic-damage dollars that satisfy a hospital's claim are the ones a defense credit targets, a tension worth mapping before distribution, as we discussed in the context of competing lien and letter-of-protection claims at settlement.

Vicarious liability and the limits of adding fault

Prop 51 apportions fault, but not every theory a plaintiff pleads generates a separate fault slice. Diaz v. Carcamo (2011) 51 Cal.4th 1148 held that once an employer admits vicarious liability for an employee's negligence, the plaintiff may not also pursue claims for negligent hiring, retention, or entrustment, because those theories would duplicate fault already captured through respondeat superior. The employer's exposure is measured by the employee's conduct, not by a second helping of institutional fault added to the verdict form.

For allocation purposes the point is that the fault pie has a fixed number of contributors, and courts will not let either side inflate it with redundant theories. That discipline cuts both ways: it caps a plaintiff's attempt to stack employer fault, and it limits a defendant's attempt to dilute its share with overlapping characterizations of the same conduct. In product cases with multiple actors in the chain of distribution, the same question — how many distinct fault shares the evidence really supports — often decides how far a single solvent defendant's non-economic liability can be reduced, a theme running through large product verdicts like the Byassee counterfeit airbag judgment.

Where the line is drawn in practice

Four decades of case law have not softened the core bargain of section 1431.2: the plaintiff bears the risk that non-economic fault lands on parties who cannot pay. What the recent decisions have done is police the edges. Intentional wrongdoers stay fully liable. Empty chairs require proof, not argument. Settlement credits run against the economic column, leaving several non-economic exposure intact. And duplicative liability theories do not multiply the fault shares a defendant can hide behind.

The takeaway for trial preparation is narrow and concrete. The verdict form's split between economic and non-economic damages, the composition of the fault pool, and the characterization of every settlement dollar are the three levers that determine collectible recovery. Draft each one deliberately, because the jury's gross number is only the opening figure — Prop 51 decides what the judgment is worth.

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