                                 CODE OF VIRGINIA

EFFECT OF RELEASE OR COVENANT NOT TO SUE IN RESPECT TO LIABILITY AND
CONTRIBUTION (§ 8.01-35.1)

A. When a release or a covenant not to sue is given in good faith to one of two
or more persons liable for the same injury to a person or property, or the same
wrongful death:

   1. It shall not discharge any other person from liability for the injury,
   property damage or wrongful death unless its terms so provide; but any amount
   recovered against the other person or any one of them shall be reduced by any
   amount stipulated by the covenant or the release, or in the amount of the
   consideration paid for it, whichever is the greater. In determining the amount
   of consideration given for a covenant not to sue or release for a settlement
   which consists in whole or in part of future payment or payments, the court
   shall consider expert or other evidence as to the present value of the
   settlement consisting in whole or in part of future payment or payments. A
   release or covenant not to sue given pursuant to this section shall not be
   admitted into evidence in the trial of the matter but shall be considered by
   the court in determining the amount for which judgment shall be entered; and

   2. It shall discharge the person to whom it is given from all liability for
   contribution to any other person liable for the same injury to person or
   property or the same wrongful death.

B. A person who enters into a release or covenant not to sue with a claimant is
not entitled to recover by way of contribution from another person whose
liability for the injury, property damage or wrongful death is not extinguished
by the release or covenant not to sue, nor in respect to any amount paid by the
person which is in excess of what was reasonable.

C. For the purposes of this section, a covenant not to sue shall include any
&#8220;high-low&#8221; agreement whereby a party seeking damages for injury to a
person or property, or for wrongful death, agrees to accept as full satisfaction
for any judgment no more than one sum certain and the party or parties from whom
the damages are sought agree to pay no less than another sum certain regardless
of whether any judgment rendered at trial is higher or lower than the respective
sums certain set forth in the agreement and whereby such party provides notice
to all of the other parties of the terms of such &#8220;high-low&#8221;
agreement immediately after such agreement is reached.

D. A release or covenant not to sue given pursuant to this section shall be
subject to the provisions of &#xA7;&#xA7; 8.01-55 and 8.01-424.

E. This section shall apply to all such covenants not to sue executed on or
after July 1, 1979, and to all releases executed on or after July 1, 1980. This
section shall also apply to all oral covenants not to sue and oral releases
agreed to on or after July 1, 1989, provided that any cause of action affected
thereby accrues on or after July 1, 1989. A release or covenant not to sue need
not be in writing where parties to a pending action state in open court that
they have agreed to enter into such release or covenant not to sue and have
agreed further to subsequently memorialize the same in writing.

HISTORY: 1979, c. 697; 1980, c. 411; 1982, c. 196; 1983, c. 181; 1985, c. 330;
1989, c. 681; 2000, c. 351; 2007, c. 443.