Delaware Business Litigation Report

Court Of Chancery Holds Release Is Binding On A Non-Signatory

Geier v. Mozido LLC, C.A. 10931-VCS (September 29, 2016)

It may surprise many of us to know that a party who does not sign a general release may still be bound by its terms. Yet, that is what this decision holds under this case’s facts, which involved New York law and a release signed by the non-signatory’s affiliates. When the release binds those for whom the releasing party is authorized to act, carve out for those other parties is needed to avoid this result.

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