General Releases Must Be Specifically Agreed Upon
Bonagura v. Home Depot, decided on 7/21/2008, illustrates what can happen when the terms and conditions of a settlement agreement aren't clearly spelled out by both parties during settlement negotiations. The parties in Bonagura had gone to a mediation conference where they agreed to settle the employee's workers' compensation claim for $50,000 plus an attorney's fee. When the defense lawyer later drew up the formal settlement documents, however, he included provisions which released the employer not only from liability for the workers' compensation claim, but from all liability of any sort.
The claimant refused to sign these documents, contending that they did not accurately reflect the terms of the agreement, and that they in fact constituted a counter-offer by the employer. He therefore rescinded his earlier agreement on the compensation claim and filed new petitions for benefits, while the employer sought enforcement of what they believed was the settlement agreement. The JCC sided with the employer and ordered the claimant to sign the releases which the employer's lawyer had prepared.
On appeal, the First DCA reversed. Said the court: "It is clear from both attorneys' testimony that the paperwork sent to Claimant after the negotiations includes matters that were not discussed and agreed upon during the oral settlement talks. It is undisputed that the attorneys did not orally discuss a release agreement."
