A release extinguishes the claims it covers. Its scope is defined by two dimensions: which claims are released, from broad general releases covering all known and unknown claims to narrow releases limited to the incident, and which parties are released, including affiliates, insurers, employees, and successors.
Releases of unknown claims require specific statutory language in some states.
Alternative Names:
Release of Claims, Release and Waiver
Why it Matters?
Release scope is where the value of a settlement is actually determined. A defendant paying to resolve a claim needs the release to reach every entity a plaintiff could later sue on the same facts, including affiliates and individual employees. A claimant with related unresolved claims needs the release narrowed. Getting the entity list wrong is a common and expensive drafting error in corporate and insurance settlements.
Frequently Confused with
Related terms
Frequently asked questions
What is a general release?
Who should be named in the release?
