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Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
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Experience:  Attorney
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Settlement Questions: General release was signed between

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Settlement Questions:

General release was signed between company paying claim and payee. Release states that this settles everything to do with the claim.

Something comes up that the payee was unaware of, and that the payor would or should have been aware of -- Payor/employee might not have known, but billion dollar Payor, as a company, would absolutely know -- payee got under educated employee to help him). If there's no SPECIFIC mention of waiving the statute of waiving regardless of facts that could or should have been known before or later learning to be the case (I RECALL SOME STATUTE LIKE THIS, AT LEAST IN CALIFORNIA), does that nullify the release and allow payee to come back?

My name is XXXXX XXXXX I'd be happy to answer your questions today.

California Civ. Code, Section 1542 states that a "general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." So, if a person signs a general release regarding certain claims and then finds out about other claims later, that release is not effective as to those claims.

It's not nullified totally - it will still apply to the claims that the person knew about. But a person cannot waive claims that he does not know existed.

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