A recent opinion by Vice Chancellor Tamika Montgomery-Reeves illustrates the pitfalls in not specifically addressing the scope of “mutual general releases” when agreeing to settle litigation. The case, Emerging Europe Growth Fund v. Figlus, (Del. Ch. Dec. 10, 2018), concerned the interpretation of “mutual general release” language in a settlement agreement. The issue before the vice chancellor was whether the parties intended to release their Ukrainian divorce proceedings, including an ongoing case the ex-wife filed regarding unpaid alimony, when they settled their actions in the Delaware Court of Chancery.
The parties agreed that they had reached an enforceable settlement agreement resolving two pending cases between them in Delaware. They also agreed on the essential terms of the agreement: the payment of money, the transfer of partnership interests and a “mutual general release.” They disagreed only on the scope of the mutual general release that was included in the settlement.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]