Opinion ID: 574972
Heading Depth: 3
Heading Rank: 3

Heading: The Mutual Mistake Theory for Invalidating the Release

Text: 27 A FELA release may be set aside on the basis of mutual mistake of fact in executing the release. Callen, 332 U.S. at 630, 68 S.Ct. at 298; Graham, 176 F.2d at 823-25. The burden is on the employee to show invalidity based upon mutual mistake. Callen, 332 U.S. at 630, 68 S.Ct. at 298. Burlington argues that there was no mistake as to the job guarantee associated with the potential yard office job and if there was any mistake at all, it was not the type of mistake recognized in FELA case law as requiring invalidation of a release. We disagree. 28 The release signed by Counts stated he was forever and permanently disabled from returning to work for Burlington. The document therefore released not only his personal injury action, but also his right to work for Burlington. The testimony at trial showed that both Maser and Counts were operating under the assumption that Counts would give up his guaranteed status with Burlington if he took the yard job. However, the testimony of Mike Crilly, a general claims manager for Burlington, indicated that this was not necessarily the case. Counts testified that he did not believe he would have signed the release and given up his employment if he knew he could work a guaranteed job in the yard office. 29 Therefore, an issue of fact was raised as to mistake in the execution of the release. While this case does not involve confusion or mistake as to the nature and extent of the claimant's injuries, the mistake here did involve the contents of the release and went to the essence of the employment damages portion of the contract. The release combined the personal injury and employment damages and the jury could consider whether the release was executed under a presently existing mutual mistake of fact. FELA case law does not rule out this type of mutual mistake. See Callen, 332 U.S. at 628-30, 68 S.Ct. at 297-98; Graham, 176 F.2d at 823-26. 30