What is Release of Claims?
A legal document signed by the plaintiff that releases the defendant from any further liability related to the incident in exchange for a settlement payment.
Understanding Release of Claims
Once a release of claims is signed, the plaintiff generally cannot pursue additional compensation for the same incident, even if their condition worsens. This is why attorneys carefully review releases before clients sign them and ensure the settlement adequately accounts for future medical needs and other potential damages.
Examples
- 1Signing a release after accepting a car accident settlement
- 2Release document required before insurer issues settlement check
- 3Attorney negotiating release language to preserve unrelated claims
Related Terms
General Release
A broad legal document in which the plaintiff waives all claims, known and unknown, against a party in connection with an incident or dispute.
Settlement
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Structured Settlement
A settlement arrangement where compensation is paid through periodic payments over time rather than a single lump sum.
Settlement Demand
A written demand from the plaintiff to the defendant or their insurance company requesting a specific amount of compensation to resolve a personal injury claim.
Demand Package
A comprehensive package of evidence, documentation, and legal arguments assembled by the plaintiff's attorney to support their settlement demand.
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