Opinion ID: 1666294
Heading Depth: 1
Heading Rank: 2

Heading: On the Validity of the Release by Mrs. Wise of Prescott and His Insurer Allstate

Text: The release in this case is a printed form, bears the signature of Mrs. Wise, and recites a consideration of 105.00. [1] Its language is broad, general, and all-inclusive, and it contains such expressions as release and forever discharge, all claims for damages sustained, or may hereafter sustain, consequences not now anticipated, all unknown and unanticipated injuries and damages. The negligence of Prescott is conceded and is no longer an issue in the case. Prescott and his insurer, Allstate Insurance Company, seek to evade liability on the theory that no judgment can be rendered against them because all matters in dispute between them and plaintiff were settled by the release, which is a transaction or compromise and as between the parties has the force equal to the authority of the thing adjudged under Articles 3071 and 3078 of the Civil Code. Plaintiff Mrs. Wise, who was over 70 years old when the accident occurred, gave the following version relating to the procuring of the release: As a result of the collision she was thrown to the floor of the bus. Immediately afterwards she was taken to Charity Hospital, where X-rays were made and medication given her for pain. She spent the night in her apartment but did not sleep because of the pain in her head, and the medication made her woozy. The next morning she was bruised and sore all over, and her face and eyes were bruised and swollen. She did not feel well enough to get around, and a neighbor came to look after her while she reclined in an easy chair. That afternoon at about 3:30 an adjuster from Allstate, on his own solicitation, came to her apartment and was admitted by the neighbor. The adjuster did not report himself to be such, and no insurance company was mentioned. This young man, who was nice and friendly, told Mrs. Wise that he came in behalf of Mr. Prescott, who had been worrying about her and felt sorry for her because of her age and wanted to give her some money to help with the X-rays and medical bills. She asked him whether this would have anything to do with the case, and he answered, No. She would not have signed the document presented to her if she had known it was a release. She signed the paper which he told her was to show her thanks to Prescott and to show his good faith in representing Prescott. She could not read what was on the paper she signed because her glasses had been broken in the accident and she could not read without them. She had an extra pair but did not know where they were, and in any event her face was so swollen that she could not have gotten them on. No copy of the paper she signed was left with her. On the other hand, the adjuster's version was this: He told the plaintiff he was a claims agent for the insurance company and wanted to negotiate a settlement. Mrs. Wise accepted the $105.00 he offered her without hesitation or complaint, there was no discussion about the amount, and there was no discussion about liability or fault as the release taken denied any liability of Prescott and Allstate. He thought Mrs. Wise read the release because she held it in front of her long enough to do so. The entire negotiations were consummated in about 15 minutes. It is obvious that the testimony of Mrs. Wise and that of the adjuster are in conflict. This case, as stated previously, was tried before a jury. The jury pursuant to a specific question of the court found that the release was invalid, and the trial judge refused to grant defendants a new trial. The jury was called upon to determine the credibility of the witnesses and the weight to be given to their testimony, and it is apparent from their finding that the release was invalid that they accepted Mrs. Wise's version of the procuring of the release. According to Mrs. Wise's testimony, accepted by the jury, she took the money in the belief that it was a gift from Prescott and that the document she signed was a receipt for the money, and she signed the document under the assurance that it would not have anything to do with her case. The question is whether under these facts the jury's finding that the release was invalid was correct as a matter of law. This kind of release is often called in personal injury cases a rush release, and is executed in a situation wherein there exists a high potential of error. Recognizing this great possibility for error inherent in rush releases, the legislatures of at least seven states have passed measures affecting their validity, and two of these have expressly labeled them as crimes against public policy. Connecticut in 1959, and Vermont and Idaho in 1961, enacted statutes permitting persons receiving personal injuries in accidents to repudiate and void any settlement or release entered into within 15 days of the injury. [2] Maryland enacted a similar provision in 1955 with a five-day period from the injury, [3] and North Dakota since 1943 has had a statute with a 30-day period. [4] In Massachusetts since 1950 any settlement or release obtained from a hospital patient within 15 days of the injury is null and void unless the injured party indicates his consent in writing at least five days prior to the procuring of the release. [5] Maine's similar provision enacted in 1959 provides that a settlement or release obtained within 10 days of the injury is null and void. [6] Up to this time the Legislature of our state has not enacted any law to protect persons suffering personal injuries from the possibility of error inherent in quick releases, compromises, or settlements, and this court would not be justified in law in declaring a rush release invalid simply because it was obtained within a very short time of the accident. In such cases, however, we feel that we are justified in recognizing that high potential for error in our consideration of all the facts and circumstances connected with the execution of this type of release. The adjuster here sought out Mrs. Wise within 24 hours of the accident, after she had spent a sleepless and painful night, while she needed someone to attend her, while she was feeling sore and miserable from the injuries she had received in the accident, and at a time when she, especially because of her age, could not reasonably have been expected to have recovered from the nervousness and upset which follow such an experience. According to the adjuster the whole conversation with Mrs. Wise lasted about 15 minutes. The facts and circumstances of the execution of the release in the instant case, in our opinion, clearly justify the finding of the jury, concurred in by the judge, that Mrs. Wise executed the release through error, and that she signed it reasonably believing it to be a receipt for a gift from Prescott and believing that it would not have anything to do with her case. Her error is one recognized under the general articles of our Civil Code on Obligations as Error as to the nature of the contract which will render it void, La.Civ.Code Art. 1841. (Italics ours.) The judgment of the Court of Appeal dismissing plaintiff's suit against Vester Prescott and Allstate Insurance Company is annulled and set aside; and it is now ordered that there be judgment in solido in favor of plaintiff Mrs. Corinne Clohecy Wise and against Prescott, Allstate, Harry J. Miller, Jr., and New Orleans Public Service, Inc., in the sum of $5,000.00 together with legal interest, and, further, that there be judgment in solido in favor of plaintiff and against Prescott, Miller, and Public Service in the sum of $2395.00 together with legal interest. All costs are to be paid by the defendants. McCALEB, J., concurs in the decree.