News & Analysis as of

Release of Claims

Akerman LLP

Purdue Pharma Foretells a Troubled Future for Bar Orders

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In Harrington v. Purdue Pharma L.P., the Supreme Court held that the Bankruptcy Code does not authorize a bankruptcy court to grant a release and injunction that extinguishes direct claims against nondebtor third parties...more

Offit Kurman

2024: Year in Review: Third-Party Releases After Purdue Pharma

Offit Kurman on

The most notable decision in the bankruptcy world in 2024 was the Supreme Court’s decision in Purdue Pharma. Harrington v. Purdue Pharma, L.P., 144 S. Ct. 2071 (2024). At the heart of the fight in Purdue Pharma were...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Three Key Considerations in Crafting Effective Multistate Separation Agreements

One of the main reasons for a separation agreement with an employee is to obtain an effective release of claims against the employer. However, ensuring release agreements are effective and enforceable is becoming increasingly...more

Venable LLP

The Evolving Status of Settlement Bar Orders after Purdue

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Following the U.S. Supreme Court’s ruling in Harrington, United States Trustee, Region 2 v. Purdue Pharma L.P, et al., which disallowed non-consensual third-party releases in Chapter 11 plans of reorganizations, bankruptcy...more

Littler

When Will a Settlement Agreement Preclude a False Claims Act Action?

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A recent District of Columbia federal court ruling reminds employers that a severance agreement containing a release of claims under the False Claims Act does not guarantee dismissal of a suit on those grounds....more

Tucker Arensberg, P.C.

Will the Acceptance of the Appeal in Purdue Pharma by the U.S. Supreme Court Affect Johnson & Johnson?

Tucker Arensberg, P.C. on

Now that the United States Supreme Court has agreed to expeditiously hear the U.S. Trustee’s appeal of the plan confirmation and settlement in Purdue Pharma, lawyers following the LTL Management LLC bankruptcy case, version...more

Parker Poe Adams & Bernstein LLP

Second Circuit Rejects Employee's Claim That Medical Condition Prevented Ability to Release Claims

When an employer presents a separation agreement and release to an employee out of work for medical reasons, questions sometimes arise regarding that person’s ability to understand and competently execute the document. If an...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Gives Employee Two Bites of the Class Action Apple

On June 30, 2022, the Supreme Court of California issued a decision in Grande v. Eisenhower Medical Center, No. S261247, that could have a far-reaching impact on the relationships between staffing companies and their clients....more

Gray Reed

Villareal v. Saenz: Fiduciary Duties Will Go On

Gray Reed on

In Villareal v. Saenz, a district court magistrate judge for the Western District of Texas, San Antonio Division, has recognized that members exiting a limited liability company may continue to hold fiduciary duties despite...more

Winstead PC

Court Held That An Heir Of An Estate Who Released All Claims Against The Estate Via A Settlement Agreement No Longer Had Standing...

Winstead PC on

In In the Estate of Maberry, the alleged common-law wife of an intestate decedent did not have standing to seek to remove the decedent’s daughter as independent administrator because she was not an “interested person”...more

Ervin Cohen & Jessup LLP

The Perils of Playing Hard Ball

Ervin Cohen & Jessup LLP on

A recent case from California, Barickman vs. Mercury Casualty, 2 Cal.App.5th 508 (2016) illustrates the perils that may arise when an insurance company, evidently playing hardball with its insured, refuses to deviate from its...more

Goulston & Storrs PC

Managing your Workforce in Unprecedented Times

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The novel coronavirus (COVID-19) pandemic has reached almost all U.S. states, the District of Columbia, and Puerto Rico.  It appears that COVID-19 originated in China’s Hubei province and it presents the greatest risk to...more

Lewitt Hackman

Franchisee 101: Corralled Franchise Claims

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A federal court has granted, in part, restaurant franchisor Golden Corral’s motion to dismiss a complaint brought by a former franchisee. The court found a general release of claims, executed as part of an assignment of a...more

Foley & Lardner LLP

Can A Whistleblower Release Her Retaliation Claim Under The False Claims Act?

Foley & Lardner LLP on

Although a whistleblowing employee typically cannot release fraud claims against her employer brought on behalf of the United States under the False Claims Act (FCA), courts have demonstrated a willingness to enforce properly...more

BakerHostetler

To Ensure a Complete Release, Address California’s New Section 1542

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Civil Code Sections 1541 and 1542, California laws that govern the extinguishment of certain obligations, were recently amended by Senate Bill No. 1431. The subtle amendments made to these code sections not only impact...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

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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

McManis Faulkner

Governor Brown Signs Workplace-Related #MeToo Bills into Law

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Following a long legislative year, Governor Jerry Brown recently signed into law several pieces of legislation aimed at curbing sexual harassment in the workplace. This topic dominated conversation in the California...more

Payne & Fears

Key California Employment Law Cases: June 2018

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This month’s key California employment law cases are from the California Supreme Court and from the California Court of Appeal. Janus v. American Fed’n of State, County, and Mun. Employees, Council 31, 138 S. Ct. 2448...more

Fisher Phillips

Sexual Harassment Dominates California Legislation in 2018

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As we discussed back in January, sexual harassment appears to be the hot topic for the California State Legislature’s 2018 session. This is certainly not a surprise, as issues related to sexual harassment and the #MeToo...more

Herbert Smith Freehills Kramer

A Pending Supreme Court Ruling Can’t Create a Claim that Doesn’t Currently Exist

After hearing oral argument at confirmation on August 30, 2017, the bankruptcy court for the Western District of Pennsylvania issued a written opinion in In re rue21, inc., et. al., Case No. 17-22045-GLT (Bankr. W.D. Pa....more

Maynard Nexsen

Employers Should Be Aware of Pitfalls When Entering into Severance Agreements

Maynard Nexsen on

Severance agreements in the workplace have evolved considerably during the last twenty-five years. The idea of severance being paid to an employee only where a company has an established severance plan is no longer a reality....more

Foley & Lardner LLP

Utilizing California Civil Code Section 1542 Waivers in Class Action Settlement Agreements: Helpful or Harmful?

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A significant concern for any lawyer negotiating the settlement of a class action in California state court is crafting a settlement agreement that the court will ultimately approve. Under California law, a judge must approve...more

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