Recently, a state appellate court issued a written opinion in a personal injury case discussing an interesting issue that will occasionally come up in Maryland truck accident cases. Specifically, the case dealt with a settlement agreement that was executed between the plaintiff and several potentially liable parties, whereby the plaintiff accepted compensation in exchange for an agreement to excuse the parties from liability.
The question the court had to answer was whether the broad language of that agreement resulted in the remaining potentially liable parties being excused from liability as well. In so doing, the court took the rare step to consider extrinsic evidence that was not contained in the settlement agreement to determine the intent of the parties.
The Facts of the Case
The plaintiff was injured in an accident involving a sandwich delivery truck. Within two weeks of the accident, the plaintiff entered into a settlement agreement with the vehicle’s owner and the owner’s insurance company. That agreement provided that the plaintiff would receive $25,000, the policy maximum, and in exchange would “release, acquit and forever discharge the said payor(s), their agents and employees, and all other persons, firms or corporations who are or might be liable” for injuries resulting from the accident.