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Barry M. Klayman and Mark E. Felger Barry M. Klayman and Mark E. Felger

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.

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