Common Grounds for Avoiding a Release
A release is a document that a party signs promising that they will not sue for a given matter and that they release certain claims that they have against another party. Releases are treated with high regard by courts because judges understand that there often needs to be finality with regards to a dispute. However, there are some common grounds for avoiding a release that people should be aware of if they wish to try and initiate litigation after signing a release.
Failure to Comprehend the Release
One of the most common grounds for avoiding a release is failure to comprehend the release either because of difficulties with reading or understanding the language in which the release is written. In order for a party to be held liable for the terms of an agreement, they often need to understand the terms to which they are agreeing. This does not require a high level of sophistication, but does require that at a baseline, individuals understand the language the release is written in and are able to read appropriately. As a result, it is important that parties wishing others to sign releases to ensure that the individual signing the release can read and understands the language in which the release is written. If there are comprehension issues, the release can be translated into a language that the party signing the release understands, and this should be memorialized in the release in case the signatory tries to attack the release at a later date.
Mental or Physical Infirmity
Another important one of the common grounds for avoiding a release is if the person signing the release has some kind of infirmity that makes it difficult for them to make competent decisions. Courts understand that releases can have a substantial impact on the parties involved and may refuse to enforce them unless the person signing the release was able to voluntarily enter into the agreement and understand its terms. Sometimes, dementia and other mental issues may prevent someone from properly agreeing to a release. This is especially true if the person is older or has a diagnosed condition that may circumstantially prove that the person was unable to fully enter into the release. As a result, individuals hoping to enter release agreements with elderly signatories and people who may have mental issues need to carefully evaluate whether the person signing the release is able to do so under their own free will.
Distress
Economic or emotional distress is another one of the common grounds for avoiding a release. As previously mentioned, courts usually only enforce a release if the parties entered into the agreement voluntarily and without any alternative motivations. This is difficult if not impossible if the person signing the release is under some kind of financial or emotional distress. For instance, if someone runs a business and they are told if the party does not sign a release, they will not receive essential services, it is possible that releases may not be enforced. Moreover, if someone approaches an individual while they are in a hospital or in another vulnerable state, it is possible that a court will refuse to enforce a release signed under those circumstances. Again, it is important for individuals to carefully evaluate the situation surrounding execution of the release in order to determine if there may be issues with enforceability.
Unconscionability
Sometimes if the terms of a release are completely unfair, courts will refuse to enforce the agreement. This is an extension of the unconscionable contract doctrine which holds that if the terms of a contract or so unfair that it shocks the conscious, a court may refuse to enforce the terms of the contract. The courts look to various factors when evaluating this one of the common grounds for avoiding a release. One important factor is the asymmetry of the terms, so if someone releases large claims with a small payout, the release may be unconscionable. A court may also look at the bargaining power between the parties to see if this is a reason behind the difference in terms. There are a variety of factors that are considered when determining if a release is unconscionable so it is important to speak with an experienced attorney if you think that this defense may apply.
Scope of the Release
One of the most common grounds for avoiding a release is arguing that the situation to which the release is applied was not contemplated by the language for the release. Sometimes, releases do not specifically cover damages or circumstances that may later give rise to a claim. In such instances, courts may be unwilling to enforce the terms of a release so that parties do not waive their claims based on situations that were not contemplated by the release agreement. As a result, it is important to speak with an experienced attorney who can draft a comprehensive release that covers all of the situations that may implicate the parties in the future.
The Rothman Law Firm is experienced in drafting releases for parties and avoiding releases if clients have a claim against parties notwithstanding a release. If you are looking for an experienced New York and New Jersey attorney to handle your release or other legal issue, please feel free to contact The Rothman Law Firm to request a free consultation.