Opinion ID: 552196
Heading Depth: 2
Heading Rank: 2

Heading: The Release Agreement

Text: 19 On March 11, 1985, Aubin and Haralson executed a contract wherein Haralson, on behalf of IBR, purported to release Aubin's corporations from all liability to RBI for the debt that RBI incurred on behalf of those corporations (the Release Agreement). In consideration for the release, Aubin agreed on behalf of his Sigma Capital Corporation to assign to RBI as much of Sigma's 50% interest in the S & Ls' sale proceeds as was necessary to pay the Note. Aubin and Haralson agreed not to disclose their agreement except as required by law. 20 Aubin's luck turned around after the Facility Agreement restored the Accounts to equity positions. By April 10, 1985, Aubin had earned at least $2 million beyond the $4 million in seed money provided by Hutton. When Hutton refused to let Aubin withdraw his gains, he threatened to sue Hutton for breaching the Facility Agreement (which he contended extinguished the Account debts), bankrupt RBI, and contest Hutton's security interest in Mercury. By the end of May 1985, Aubin's gains had increased to $20 million and the parties' animosity toward one another was growing proportionately.