City of Houston v. Aber
In City of Houston v. Aber, 770 S.W.2d 89, 90 (Tex. App.-Houston 14th Dist.1989, no writ), the court decided whether a $ 100,000 settlement with a city employee operated to extinguish the city's liability as was argued by the city. See Aber, 770 S.W.2d at 89.
Both parties agreed that the TTCA applied to limit the liability of the city to $ 100,000; however, the city contended that the judgment should be reduced to the maximum liability under the TTCA and the settlement subtracted from the $ 100,000 limit, thereby negating any liability of the city. Id.
The appellee contended that the TTCA should be liberally construed in favor of the claimant so that the court correctly credited the settlement to the entire judgment against the city. Id.
The court agreed with the appellee and held that the settlement with the city employee was not in full settlement of appellee's claim against the city. Id.
The court further stated that "a plaintiff may always settle with the employee without losing his action against the employer under respondeat superior. " Id.