Release Agreements

News & Analysis as of

The Meaning Of "Successors," "Members," And "Designees" In A Release

The words "successors," "members," and "designees," as used in a Release were at issue in Judge Bledsoe's Opinion last week in TaiDoc Technology Corp. v. OK Biotec Co., 2015 NCBC 71. Plaintiff TaiDoc had settled a...more

ERISA Case Highlights Importance of Written Releases at Termination of Employment: Sullivan v. Stanadyne Corporation

A federal court has dismissed claims for enhanced retirement benefits in a case highlighting a participant’s written release of claims at the time of his employment termination. Sullivan v. Stanadyne Corporation, Case No....more

A Reminder to Employers That FLSA Claims Cannot Be Waived in Most Circumstances

When an employer signs a general release of claims with a former employee, it expects that the agreement and the consideration provided will prevent future legal claims. However, certain actions, such as Workers’ Compensation...more

Business Court Refuses To Unwind Mediated Settlement Agreement

The Defendants in last week's decision in DeCristoforo v. Givens, 2015 NCBC 53 were hellbent on getting out from under a settlement they had agreed to at mediation. They offered a host of challenges to the validity of their...more

"Full and final settlement of any and all claims" – not so, says the Alberta Human Rights Tribunal

The Alberta Human Rights Tribunal (“Tribunal”) released a decision this month that considered whether the terms of a Release Agreement constituted a valid and enforceable settlement of an employee’s allegations of human...more

Coffee Beans, Mars and the 50 States: Civil Code 1542 Waivers and Latent Defects

A few years ago, Pulitzer Prize-winning reporter Charles Duhigg wrote a book that was on the New York Times bestseller list for over 60 weeks, The Power of Habit: Why We Do What We Do in Life and Business. As its title...more

Russian Court Terminates Lease Agreement Using “Adhesion” Doctrine

The Russian Commercial Court recognizes a tenant’s right to terminate a lease agreement based on the “adhesion” doctrine and unequal bargaining power. The current financial crisis in Russia is prompting some tenants to...more

Waive Not, Want Not: Waivers and Releases on California Construction Projects

California is one of a handful of states (12 to be exact) which have statutory mandated waiver and release forms for construction projects. So, here’s what you need to know before you sign one. California has four statutory...more

Delaware Chancery Court Concludes Indemnification and Other Provisions of a Merger Agreement Are Not Enforceable Against...

In November, the Delaware Court of Chancery issued a decision that raises troubling questions about commonly used techniques in private company acquisitions and that, if not modified on appeal or through legislation, could...more

Cigna Health and Life Ins. Co. v. Audax Health Sol’ns, Inc., C.A. No. 9405-VCP (Del. Ch. Nov. 26, 2014)

In this action seeking a declaratory judgment regarding the validity of certain provisions in a merger agreement and related contracts, the Court of Chancery granted in part plaintiff’s motion for judgment on the pleadings,...more

“Voluntary” ? “Obligatory”: Good Deeds Do Not Trigger Coverage

Liability policies typically provide coverage for amounts the insured “become[s] legally obligated to pay”—but they leave open the question of how that obligation should be determined. Judgments and settlements clearly...more

How Should Employers Draft Severance Agreements Post-CVS?

Last month, a federal judge in Illinois dismissed a lawsuit brought by the Equal Employment Opportunity Commission contending that a standard release agreement used by the CVS drugstore chain violated the anti-retaliation...more

Rossi v. Photoglou - California Court of Appeals, 4th Appellate Div., September 29, 2014

Rossi v. Photoglou - California Court of Appeals, 4th Appellate Div., September 29, 2014: California appellate court reverses summary judgment in favor of Real Housewife of Orange County Gretchen Rossi against "friend"...more

Eleventh Circuit: Florida Law Does Not Equate Mere Negligence with Bad Faith

Kincaid v. Allstate Prop. and Cas. Ins. Co., No. 2:13-cv-014030, 2014 WL 3733758 (11th Cir. Jul. 30, 2014) - The Eleventh Circuit holds that under Florida law, negligence does not equate to bad faith, and under the...more

Real Property, Financial Services & Title Insurance Update: September 2014 #2

REAL PROPERTY UPDATE - - Parol Evidence: trial court erred by considering extrinsic evidence to determine parties’ intent because contract for sale of property that provided certain prior deposits be paid to seller as...more

EEOC Challenges Overbroad Medical Releases In Lawsuit Against Cummins Power

Company Violated Two Federal Laws by Making Invasive and Irrelevant Inquiries Through Its Medical Releases, Federal Agency Charges - MINNEAPOLIS - Shoreview, Minn.-based Cummins Power Generation violated federal law by...more

Sixth Circuit Voids FLSA Collective Action Waiver Signed as Part of Separation and Release Agreement in Killion v. KeHE...

On July 30, 2014, the Sixth Circuit Court of Appeals invalidated a collective action waiver signed as part of a separation and release agreement. The ruling is significant because it is the first time a federal appellate...more

Waivers of Age Discrimination Claims in Reduction in Force Cases Continue to Face Intense Scrutiny

A Federal court in Colorado recently permitted a former employee to advance an age discrimination claim despite his prior execution of a severance and release agreement after his employment ended in connection with a...more

EEOC’s Battle Against Employee Releases Heats Up

In February, we commented on the EEOC v. CVS Pharmacy, Inc. case, where the EEOC filed a “pattern or practice” lawsuit against CVS in Illinois federal court, claiming that CVS’ employee releases discourage the filing of EEOC...more

They Really Mean It: the EEOC Sues Another Employer for Allegedly Overbroad Releases

Recently, the Chicago District Office of the Equal Employment Opportunity Commission (EEOC) sued CVS Pharmacy, Inc. because CVS required employees to sign a release that the EEOC claims was “overly broad, misleading, and...more

The EEOC Takes Aim, Once Again, at Employers’ Separation Agreements

On April 30, 2014, the U.S. Equal Employment Opportunity Commission filed suit against a private college, charging for the second time in two months that an employer’s severance agreement was unlawful. The EEOC alleged that...more

Eleventh Circuit Affirms Ability to Obtain Release of FMLA Claims

When the Family and Medical Leave Act became effective, federal courts split on the ability of employers to obtain effective releases of FMLA liabilities. In 2009, the Department of Labor provided some clarity to this issue,...more

Medical Staff Application Release Bars Physician Credentialing Claim

In Copeland v. MidMichigan Regional Medical Center, a Michigan State Appellate Court affirmed a trial court’s grant of summary judgment in favor of the Hospital, based upon both HCQIA immunity and a general release signed by...more

Releases of Liability: Do's and Don't's for Employers

Employers often use waivers and releases of claims in agreements with former employees, either as part of a separation agreement at the time employment ends or in a settlement agreement after a former employee has raised...more

Recommendations in Response to the EEOC’s New Lawsuit on Severance Agreements

On February 7, 2014, the Chicago District Office of the Equal Employment Opportunity Commission brought suit in the U.S. District Court for the Northern District of Illinois against CVS Pharmacy, Inc., claiming that a...more

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