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TORTS (general release; mutual mistake): Bobbitt v. Collins (COA 1/22/2010)

By Michael Stevens

Bobbitt v. Collins
2007-CA-001422 01/22/2010 2010 WL 199308

Opinion by Judge Wine; Judges Stumbo and Thompson concurred. The Court reversed and remanded summary judgment orders dismissing personal injury claims arising from a multi-vehicle collision. The Court held that the trial court did not err in finding that the clear language of a general release discharged all the defendants. Because the claimant did not make a timely acceptance of an offer of judgment and the settling defendants did not extend the settlement offer beyond the ten-day period allowed by CR 68, the settlement offer was subject to ordinary contract law. The Court then held that the trial court correctly found that the general release, signed by the claimant, was enforceable as a contract provision. Because the release was not ambiguous, the trial court was not required to look beyond its terms to interpret it. However, the Court held that the trial court erred in finding that the release precluded the claimant from seeking rescission and that the parol evidence rule precluded an equitable claim for rescission or reformation based on fraud, illegality or mutual mistake. The Court then held that the evidence clearly established a mutual mistake and that the parties to the contract never intended the general release language to be included. Therefore, the trial court erred by denying the request for rescission of the release.

Full post as published by Kentucky Cases on March 21, 2010 (boomark / email).