Release Deemed to Encompass Unknown Claims (Including Fraud) in Trump Family Dispute

Inartful or imprecise language of releases can lead to needless and costly litigation. The abundance of cases challenging the scope of releases that have been drafted and entered into with the intention of settling disputes underscores how important it is to take care in using precise language when crafting the release.

Release of Fraud and Unknown Claims

Principal sources of litigation over the scope of releases are whether the release at issue covers fraud claims and/or “unknown” claims. The Appellate Division, First Department’s new decision arising out of the Trump family dispute in Trump v Trump, 2023 NY Slip Op 03427 (1^st Dep’t Decided June 22, 2023) provides not only insight into what language to use in a release, but also authority supporting the enforcement of a release over unknown claims, including for fraud, even without actually stating that the release encompasses “known and unknown” claims.

Read the full blog here.