Articles Posted in Settlements

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The Supreme Court of Rhode Island has held that the release of a master or principal or employer from liability also releases a servant or employee from potential legal liability.

In this case, Michelle Hall sued Tavares Pediatric Center Inc., an assisted living facility, alleging liability for injuries her daughter suffered while being care for there. Before trial, the parties settled. The plaintiff signed a joint tortfeasor release that exempted Tavares agents and employees. The court then dismissed the case.

Later, Hall sued two nurses who provided care to her daughter at the same Tavares Pediatric Center. The nurses moved for summary judgment on the basis that under state law, they and Tavares were a single tortfeasor and, therefore, Tavares released the nurses. The trial court agreed and an appeal was taken.

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In an April/May CBA Record article written by attorney Dmitry N. Feofanov, the options for agreeing to confidentiality clauses in settlement agreements were explained. Too often confidentiality agreements seem to show up in settlement agreements or release documents when no negotiations have been previously entertained. At the very least, if a confidentiality clause is insisted upon by any party to a settled case, the inclusion should be negotiated as part of the consideration.

Mr. Feofanov’s focus was on the ethics rules of professional conduct. What Mr. Feofanov wrote was that confidentiality clauses should be avoided whenever possible and even with the risk that refusal to include confidentiality clauses to the agreement may undo a settled case.

Mr. Feofanov says he refuses to compromise on confidentiality clauses in any way and would not enter into settlement agreements that contain confidentiality clauses.

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