Dismissal of Defendant Upheld on Appeal Due to Release Language in Prior Settlement

Goldberg Segalla
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Goldberg Segalla

Jurisdiction: Supreme Court of New York, Appellate Division, First Department

The Supreme Court of New York, New York County, on March 13, 2024, dismissed defendant Long Island Lighting Company from an asbestos action, finding that plaintiffs’ claims related to a mesothelioma diagnosis were barred by a prior settlement agreement and general release. Plaintiffs Lilian McLaughlin and her now deceased husband, Thomas J. McLaughlin, subsequently appealed the dismissal order.  

In 1993, the McLaughlins signed a settlement agreement and general release in a prior federal action in which they sought to recover damages for Mr. McLaughlin’s injuries (i.e., asbestosis) from asbestos exposure purportedly contracted during his employment as a steamfitter and welder at the construction of LILCO’s nuclear power station between 1978 and 1982.

The release encompassed “any and all claims of any kind whatsoever that they had ever had or may ever had” against LILCO as a result of alleged asbestos exposure, including “any and all claims which may arise for personal injuries or wrongful death” and provided that the settlement was “in complete satisfaction” of such claims.

On appeal, the Appellate Division determined that the language of the aforementioned release is “plain and unambiguous” and “embraces all possible matters arising between the parties.” The Appellate Division further determined that plaintiffs failed to raise any issue of fact to demonstrate that the parties to the federal action settlement believed, by mutual mistake, that Mr. McLaughlin would never contract mesothelioma and thus intended the release to be limited to asbestosis notwithstanding its general language.

For these reasons, the lower court order was unanimously affirmed the lower court’s dismissal as to LILCO.

Read the full decision here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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