Jay M. Feinman

Abstract

This article discusses the contexts in which disputes arise over the execution of liability releases by property holders in the course of settling property loss claims. It analyzes two conflicting interpretations of these disputes, each yielding markedly different results. The article explains the nature of this conflict—rooted in principles of contract law and insurance law—before outlining the arguments favoring full indemnification for the claimant and the counterarguments for insurers seeking to avoid additional liability. In other words, the public policy interest in the full payment of insurance claims is pitted against the insurer’s interest in the final resolution of disputes. The article concludes by siding with the claimant, arguing that most releases, even if deemed enforceable, encourage improper claims practices and therefore should be held unenforceable as a matter of public policy.

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