What a release does
- Accepts the settlement amount as full and final
- Waives future claims arising from the same loss
- Often waives bad-faith exposure
- Typically cannot be undone
When you see one
- Final settlement check arrives with a release to sign
- Closing letter references a release requirement
- Check memo line contains "full and final"
What to do instead
- Don't cash the check until the release is reviewed
- Read the release language carefully: particularly scope of release and reopen rights
- Have a licensed PA or attorney review before signing
- Negotiate narrower language if possible