Typically during the settlement of claims between a plaintiff and a defendant, the defendant will want assurances that the plaintiff will not turn around and sue him or her again for different types of related claims, or otherwise continue to drag out litigation after a settlement is reached. In order to create these assurances, parties will usually sign what is known as a release.
A release essentially gives up outstanding claims that a plaintiff may have, whether known or not known at the time. Releases can be narrowly limited to the exact facts of the case or more broadly construed to cover any possible claims a plaintiff may have. While releases are often a normal part of the settlement process, they must be treated very carefully, since a plaintiff can easily and unwittingly give up more than he or she intended. This is illustrated in a recent Tennessee personal injury case before the Tennessee Court of Appeals.
In this ATV accident case, L.J. was a passenger in an ATV accident and was severely injured. The driver of the ATV, L.S., was killed in the accident. L.J. alleged that the accident was a result of negligence on the part of L.S. and brought a claim for medical bills and personal injury against L.S.’s estate in probate court. L.J. also filed a lawsuit against the personal representative of L.S.’s estate. At the time, L.J. also had uninsured motorist coverage through Geico, and Geico was added as a party to the lawsuit. The estate subsequently settled with L.J., offering her a semi truck that had been owned by the defendant, which was sold and of which L.J. received the profits.