What is the 'Mary Carter' agreement in liability claim resolution?

Mary Carter agreements (named after a 1967 Florida case, Booth v. Mary Carter Paint Co.) are settlement agreements that resolve part of a multi-defendant case while keeping the settling defendant in the litigation in a modified posture. Typical features: (1) Settling defendant agrees to pay an amount (sometimes immediately, sometimes contingent on case outcome); (2) Plaintiff guarantees the settling defendant won't owe more than a specified amount; (3) Settling defendant continues to appear at trial but in a manner that may help the plaintiff against remaining defendants; (4) Recovery from remaining defendants may reduce or offset the settling defendant's payment. Concerns: (1) Trial distortion — the settling defendant has incentive to help plaintiff, hidden from jury; (2) Confidentiality — terms may be secret from non-settling defendants; (3) Fairness — non-settling defendants face a stacked deck. Many states (Florida, Texas, others) have either banned Mary Carter agreements outright or required disclosure to the court and non-settling parties; some require disclosure to the jury. Standard alternative: a complete release of the settling defendant who is dismissed from the case (with allocation issues handled through pro tanto or proportionate fault reduction). Adjusters in multi-defendant claims should be aware of Mary Carter dynamics and state law restrictions.