Plaintiff's Claim That Release Was Not "Fairly And Knowingly Made" Defeats Motion To Dismiss

A new Appellate Division, Second Department, decision in Applewhite v 112 Liberty Assoc., LLC, 2024 NY Slip Op 06323 (2d Dep't Decided Dec. 18, 2024) continues the lenient approach that courts sometimes take when releases have been signed under questionable circumstances. Even when actual fraud is not established, courts have been willing to consider grounds to avoid a written release of claims where it appears the individual releasor may not have "fairly and knowingly" signed the release.

In Insurance Rep Overreaching Could Prevent Release from Being "Fairly and Knowingly" Made, I explained that particularly when insurance company representatives allegedly pressure an injured person to signed a release of the insured, courts will not hesitate to relieve the injured party from the legal effects of the release—even when the elements of fraudulent inducement have not been established or even alleged. As I explained: