Summary
The Delaware Supreme Court held that a release executed by a subdivision developer in favor of an engineering company was an unambiguous general release. The release barred the developer’s contract and tort claims arising from the engineering services, and the court affirmed summary judgment. Because the release resolved the tort claims, the court did not address the economic loss doctrine.
Topics
Practice areas
Questions Presented
- Whether the release was ambiguous or, instead, unambiguously a general release.
- Whether the release barred Riverbend's contract and tort claims, including negligence claims.
- Whether the economic-loss doctrine barred Riverbend's tort claims.
Holdings
- The release was unambiguously a general release that waived all known and unknown claims arising from Green Stone's provision of engineering services for the project.
- The general release barred both Riverbend's contract claims and its tort claims against Green Stone.
- The court did not decide whether the economic-loss doctrine barred Riverbend's tort claims because the general release independently barred those claims.
Key quotations
“Because we find the release is a general release that unambiguously waives all claims, we AFFIRM the grant of summary judgment below on both the tort and contract claims.” (55 A.3d at 330)
“We hold the only reasonable reading of the Release is as a general release that waives all known or unknown claims against Green Stone.” (55 A.3d at 336)
“Because we hold that the Release unambiguously operates as a general release “of and from all known or unknown ... claims ... and all other ... causes of action, or suites [sic] at law or in equity,” we hold that the Release operates as a bar to Riverbend’s tort and contract claims.” (55 A.3d at 337)
Factual background
Riverbend and Parkway Gravel intended to develop property containing federally protected wetlands. Green Stone provided engineering and wetlands-related design services, but its plans allegedly failed to show that wetlands connected across a roadway, after which Riverbend proceeded with earthmoving and roadway grading. When Green Stone later withheld its work product pending execution of a document, Riverbend's representative signed a release covering claims arising from Green Stone's engineering work. Subsequent cease-and-desist orders and regulatory proceedings allegedly prevented development and led to foreclosure of the property.
Procedural history
Riverbend sued Green Stone after federal and state wetlands issues allegedly resulted from engineering plans prepared by Green Stone. Green Stone moved for summary judgment, arguing that the economic-loss doctrine barred the tort claims and that a general release barred all claims. The Superior Court granted summary judgment, and the Delaware Supreme Court affirmed on the ground that the release unambiguously barred both the tort and contract claims.