Opinion ID: 2334569
Heading Depth: 3
Heading Rank: 3

Heading: The Release Does Mention Owner's Claims Against Insurer as Required by Texas Law.

Text: Insurer relies on a release contained in the proof of loss Owner signed as an affirmative defense. The release stated: In consideration of such payment said Company is hereby discharged and forever released from any and all further claim, demand or liability whatsoever for said loss and damage, under the Policy herein referred to, repairs and/or replacements having been made to my entire satisfaction. Under Texas law, to release a claim, the releasing document must `mention' it. Memorial Medical Center of East Tex. v. Keszler, 943 S.W.2d 433, 434 (Tex.1997). In Keszler , a doctor signed a release in settlement of his suit against a hospital for disciplinary action taken against him. Id. In the release, the doctor and the hospital agreed that the doctor would release all claims related to [the doctor's] relationship with [the hospital]. Id. at 435. The Texas Supreme Court held that this release barred the doctor's later suit for fraud and negligence based on exposure to a toxic sterilizing agent the hospital used during his employment because those claims were related to his relationship with the hospital, and, therefore, mentioned in the release. Id. In this case, the release signed by Owner stated that Insurer is discharged and forever released from any and all further claim, demand or liability whatsoever for said loss and damage, under the Policy herein referred to, repairs and/or replacements having been made to my satisfaction. (Emphasis added). In light of the trial court's grant of summary judgment finding no material facts in issue, the said loss and damage language in the release appears to refer to the loss of the airplane. All of Owner's claims related to the incident that damaged its airplane and were, therefore, mentioned in the release contained in the proof of loss signed by Owner. By executing the release and accepting the $1.5 million in settlement funds, Owner relinquished any claims against Insurer arising out of, related to, or involving the incident that damaged Owner's airplane, including the claims of negligence, negligent misrepresentation, and bad faith. Owner argues that the release contained in the proof of loss signed by Owner was similar to the release in a Texas federal district court case, Vaughan v. Hartford Casualty Ins. Co., 277 F.Supp.2d 682 (N.D.Tex.2003), in which the court held the release was not broad enough to cover the claims asserted. Regardless of the Texas federal district court's decision in Vaughan , the Texas Supreme Court is the ultimate authority on the interpretation and application of Texas law. See Tex. Const. art. V, sec. 3. This Court must follow the Texas Supreme Court's holding in Keszler in finding that Owner's claims were mentioned in the release. Owner voluntarily released these claims against Insurer, and Insurer is entitled to judgment as a matter of law.