A valid release constitutes a complete bar to an action on a claim which is the subject of the release. However, a release may be invalidated for any of the traditional bases for setting aside written agreements, namely, duress, illegality, fraud, or mutual mistake. In addition, a release may be set aside on the ground that it was not fairly and knowingly made. This basis for setting aside a release may be applied in situations falling far short of actual fraud' such as when, because the releasor has had little time for investigation or deliberation, or because of overreaching or unfair circumstances, it was deemed inequitable to allow the release to serve as a bar to the claim of an injured party. Although a defendant has the initial burden of establishing that it has been released from any claims, a signed release shifts the burden going forward to the plaintiff to show that there has been fraud, duress, or some other fact which will be sufficient to void the release.
Applewhite v. 112 Liberty Assoc., LLC, NY Slip Op 06323 (2d Dep't December 18, 2024)
