Release Agreements

News & Analysis as of

New Jersey Companies Face Significant Class Action Risks When Using Limiting or Exculpatory Language in Consumer Contracts

A federal judge in Camden, N.J., recently granted class certification in a case brought under the Truth in Consumer Contract, Warranty and Notice Act (“TCCWNA”). The class is made up of individuals who signed lease agreements...more

Does General Release Also Cover Noncompete Agreement?

In determining the proper scope of the general release, the court analyzed both the express contract language and the parties' negotiations. Regarding the express contract language, the court found that the general release...more

Federal Court Allows Terminated Employee to Proceed with Age Discrimination Claim Despite Her Execution of a Release of Claims

A recent Colorado federal court decision serves as a good reminder to employers on how not to obtain a release of claims from a terminated employee. For starters, don’t tell the employee her job is being eliminated and then...more

Current Water Utility CCN Decertification Issues At The Public Utility Commission Of Texas

The responsibility for the regulation of water and sewer service, including the oversight of certificates of public convenience and necessity (“CCNs”), was recently transferred from the Texas Commission on Environmental...more

Insights: The Delaware Edition - October 2015

We are pleased to share with you the inaugural issue of Insights: The Delaware Edition, a periodic publication addressing significant Delaware deal litigation and corporation law developments. In This Issue: - Q&A...more

"Delaware Courts Question Long-Standing Practice of Approving Disclosure-Based Deal Litigation Settlements"

In a series of rulings issued over the last few months, the Delaware Court of Chancery has shaken up decades of well-settled authority in the area of deal litigation settlements. The Court of Chancery historically has...more

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

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