What is a “Release”?
A release is language in a written document (often a settlement agreement) that makes you give up your right to sue, in exchange for receiving something in return — typically money — from the party paying you.
In other words, if you want to receive money to settle your civil claim (for negligence, breach of contract, or anything else), the paying party you will usually ask you to sign something, a release, which bars you from bring the same claims in the future — which the whole point of “settling” a case.
A well-written release can bring closure to a bitter, complex, and expensive dispute. However, you can inadvertently release claims not contemplated at the time of the settlement, or it can absolve people, companies, or even government entities not intended to be released, leaving the releasing party in a far worse position. Buttermore v. Aliquippa Hospital, 522 Pa. 325, 561 A.2d 733 (1989).
Contact Us Today!
Email Us
Call or email us to review any release and evaluate any civil claim. For answers to Frequently Asked Questions about releases, see below.
412.342.0992
Frequently Asked Questions
What Areas of Law Can be Governed by a “Release”?
A release is a common fixture and part of civil procedure that comes into play in every kind of civil litigation, including:
- Injuries on property. The release can be signed before or after a fall or other injury on property, protecting the owner or possessor of property,
- Employment law claims: Severance agreement, non-compete disputes,
- Motor vehicle accident claims, whether you are “full tort” or “limited tort,”
- Trade secret dispute – or other intellectual property dispute,
- Breach of contract dispute – constructional law, renovation, debt collection,
- Consumer protection law claims: violations of PA’s Unfair Trade Practices and Consumer Protection Law, and,
- more.
Can a Release Bar a Claim Not Intended to be Released?
Yes, a clear and unambiguous release can bar you from bringing “all claims,” even those barred by “accident.”
Best to start with an example. Let’s say you paid a builder to build your home. You’re happy with the work, so you pay the final installment and you move in. Only, you develop shortness of breath, because the builder had used the wrong type of floor sealant in the basement, making you sick from the noxious fumes. You feel fine after a few weeks, but you threaten suit against the builder — for negligence and personal injury for your respiratory problems. Then, the builder offers to pay you 10K if you sign something to abandon of your claims, which is standard. But give careful review of the release language. You mnot want to abandon “all claims known or unknown against the builder,” as indicated in the release.
First, what if there exists in your new home a hidden electrical problem, inside the wall — not yet discovered? And, it will cost 20K to correct? Secondly, let’s say there’s also a plumbing issue beneath the new floors — not yet discovered — requiring 15K to fix? Here, the agreement you signed — to get 10K (for shortness of breath) from the builder — may have cost you 35K in other claims accidentally released.
What Standard Does a Court Apply to Enforce a Release?
The courts will enforce any release — even if signed by “accident” — so long as (a) the release language is clear and unambiguous and (b) the party signing the release receives something of value (or “consideration”) for signing the release. There are no “magic words” needed in a release. In fact, PA’s Supreme Court has stated the rule quite simply: “it is well settled [in Pennsylvania] that the effect of a release is to be determined by the ordinary meaning of its language.” Pennsbury Vill. Assocs., LLC v. Aaron McIntyre, 608 Pa. 309, 322, 11 A.3d 906, 914 (2011) (quoting Taylor v. Solberg, 566 Pa. 150, 778 A.2d 664, 667 (2001) (citation omitted)).
In Werner v. 1281 King Associates, LLC, No. 1725 MDA 2023 (Pa. Super. Nov. 13, 2024 Panella, P.J.E., Lane, J., and Stevens, P.J.E.), the Plaintiff filed suit against a property owner for injuries Plaintiff sustained, allegedly from a defect of the property. The superior court affirmed a trial court’s decision to dismiss the lawsuit, based upon a claim that the Plaintiffs had released the Defendants from liability in this tort litigation under a contract that the Plaintiff had executed, which terminated the parties’ business relationship.
Does it Absolve Parties Not Even Paying the Plaintiff?
In Pennsylvania, your decision to release the party paying to settle your case can inadvertently exonerate other parties against whom you might want to file suit, but haven’t yet.
For example, in Buttermore v. Aliquippa Hospital, 522 Pa. 325, 561 A.2d 733 (1989), a plaintiff, who had been injured in an automobile accident, agreed to release the negligent driver who caused Plaintiff’s injuries. Plaintiff signed a release that released not only the negligent driver, but also: “any and all persons, associations and/or corporations, whether known or unknown” from “past, present, and future claims … arising from damage to property, bodily injury or death resulting or to result from an accident which occurred on or about the 3rd day of December, 1981.” Id. at 327-28, 561 A.2d at 734. The plaintiff then filed an action against the hospital and doctors that treated the injuries he sustained in the accident, claiming that their negligent treatment aggravated his injuries and worsened his condition.
The healthcare defendants successfully claimed that the release of the negligent driver released all other potential defendants, as well. The PA Supreme Court noted: “[t]here is no requirement that all of the parties to be discharged from liability are specifically named within a release if the terms of the release clearly extend to other parties.” Ford Motor Co. v. Buseman, 954 A.2d 580, 583 (Pa.Super. 2008) (citation omitted).
Let’s Us Review Your Case!
Contact us to review any release, settlement agreement, or civil claim in Pennsylvania!
412.342.0992
