Section 7.3 Release

• Library: Settling Cases 2014

A release is a written contract of compromise and settlement. Anselmo v. Mfrs. Life Ins. Co., 595 F. Supp. 541 (W.D. Mo. 1984), aff’d, 771 F.2d 417 (8^th Cir. 1985); Sanger v. Yellow Cab Co., 486 S.W.2d 477 (Mo. banc 1972). As such, a release is governed by general principles of contract law, and the primary rule of construction is that the intention of the parties shall govern. Andes v. Albano, 853 S.W.2d 936, 941 (Mo. banc 1993). In addition, it will act as an affirmative defense. Warren v. Paragon Techs. Group, Inc., 950 S.W.2d 844, 845 (Mo. banc 1997).

Generally speaking, a valid release is an absolute bar to all claims covered by the release. Sohn v. Show Petroleum Inc., 581 F. Supp. 23, 25 (E.D. Mo. 1984). “A general release ‘disposes of the whole subject matter or cause of action involved.’” Blackstock v. Kohn, 994 S.W.2d 947, 954 (Mo. banc 1999).

Any question regarding the scope and extent of a release is to be determined according to what may fairly be said to have been within the contemplation of the parties at the time the release was given. This, in turn, is to be resolved in the light of all the surrounding facts and circumstances under which the parties acted.

Montrose Sav. Bank v. Landers, 675 S.W.2d 668, 671 (Mo. App. W.D. 1984). See also Cont’l Bank & Trust Co. v. Am. Bonding Co., 605 F.2d 1049, 1056–57 (8^th Cir. 1979); State ex rel. Normandy Orthopedics, Inc. v. Crandall, 581 S.W.2d 829, 833 (Mo. banc 1979).

The preceding legal principle applies even though the language of the covenant itself, given a literal reading, indicates a general release from all obligations and liabilities. Slankard v. Thomas, 912 S.W.2d 619, 624 (Mo. App. S.D. 1995) (citing State ex rel. Stutz v. Campbell, 602 S.W.2d 874, 876 (Mo. App. E.D...