News & Analysis as of

Creditors Release Agreements

Ervin Cohen & Jessup LLP

Can a Receivership Court Bar Third Party Claims?

Q: I am a receiver for a corporation, in a case arising out of fraud allegations. I have asserted claims against various insiders. They are willing to settle with me for a significant sum, but only if the court bars...more

Pillsbury Winthrop Shaw Pittman LLP

Nonconsensual Third-Party Release Limits: Substantial Financial Contribution Won’t Buy Non-Debtors a Release From Claims That...

Reorganization plans providing for non-debtor releases (i.e., releasing non-debtors from claims by creditors of the debtor) have been regularly challenged in recent years, frequently by the United States Trustee and other...more

Hudson Cook, LLP

Don't Assume What a Court Will Assume About Your Contract

Hudson Cook, LLP on

It's often difficult to predict how a court will interpret text, whether the text is part of a statute, a regulation, or a contract. Sure, courts have tools to aid their interpretations, but how a court will apply those tools...more

Pillsbury - Gravel2Gavel Construction & Real...

Update Your California Release Provisions to Include Amended Section 1542 Language

Most companies have been involved in a situation where they want to end their relationship with another company, or with an employee, and to permanently terminate their mutual obligations (e.g., a settlement agreement...more

Cooley LLP

Alert: California Legislature Amends Required CCP 1542 Language

Cooley LLP on

California Code of Civil Procedure Section 1542 precludes the waiver of unknown claims unless the protections of the section are expressly relinquished. In order to effectively waive the protections of California Code of...more

Sheppard Mullin Richter & Hampton LLP

Head’s Up: Changes Made to Civil Code Section 1542

Civil Code section 1542 waivers are commonly included in a myriad of transactional documents and typically coupled with “as is” provisions. In essence, absent an express waiver of Section 1542 in a contract, the releasing...more

Sheppard Mullin Richter & Hampton LLP

California Legislature Amends Section 1542: Are Employer Settlement Agreements Now More Vulnerable to Attack?

On January 1, 2019, California’s Senate Bill No. 1431 went into effect, making a slight, but potentially significant amendment to Civil Code Section 1542. The prior version of the statute read: “A general release does not...more

Proskauer - Minding Your Business

Think Your Release is Ironclad? Consider California Civil Code Section 1542

Settlement agreements often include broad general releases covering claims existing from the “beginning of the world” to the settlement date – whether the claims are known or unknown to the releasing party. And in many...more

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