Summary
The Delaware Supreme Court affirmed summary judgment enforcing a general release signed by the plaintiff after an automobile accident. The court held that the undisputed evidence showed no mutual mistake of fact regarding the existence of her injuries, because the plaintiff and insurer knew she was experiencing ongoing pain and the release expressly addressed possible future or more serious injuries.
Topics
Practice areas
Questions Presented
- Whether undisputed evidence established a mutual mistake of fact concerning the existence or extent of Alvarez's injuries sufficient to set aside an otherwise valid general release.
- Whether the Superior Court properly granted summary judgment based on the clear and unambiguous language of the release.
Holdings
- A clear and unambiguous general release may be set aside for mutual mistake only when both parties were unaware of the existence of the claimant's injuries at the time of contracting; a mistake concerning the future or the later-discovered extent or effect of known injuries is not sufficient.
- Summary judgment for Castellon was proper because the undisputed evidence showed no mutual mistake of fact and the clear and unambiguous release was a complete defense.
Key quotations
“A court may, however, set aside a clear and unambiguous release where there is fraud, duress, coercion, or mutual mistake concerning the existence of a party’s injuries.” (354)
“where parties have knowingly and purposely made an agreement to compromise and settle a doubtful claim, whose character and extent are necessarily conditioned by future contingent events, it is no ground for the avoidance of the contract that the events happen very differently from the expectation, opinion, or belief of one or both of the parties.” (355)
“No mutual mistake of fact existed between the parties at the time that the release was signed.” (357)
Factual background
Castellon rear-ended Alvarez's vehicle on April 15, 2010. Alvarez received hospital treatment, later reported ongoing back and neck pain to Nationwide, and executed a $1,500 release of liability on April 20, 2010. She subsequently developed right shoulder and arm pain and was diagnosed with a herniated thoracic disc in July 2010. The release expressly acknowledged that more serious or permanent injuries might later appear and that recovery was uncertain and indefinite.
Procedural history
After an automobile accident, Alvarez executed a $1,500 release in favor of Castellon and his insurer. She later filed a personal-injury action, alleging that the release was voidable because the parties were mutually mistaken about her injuries. The Superior Court held that the clear release controlled, found no mutual mistake, granted summary judgment for Castellon, and dismissed the action. The Supreme Court of Delaware affirmed.