Recent Development: Compromise and Releases

In Silva v State Farm Mut. Auto. Ins. Co., the plaintiff sued defendant, defendant’s liability insurer, and plaintiff’s UM carrier.  The UM carrier was not served and subsequently was dismissed without prejudice.   The plaintiff then settled with the defendant and his insurer; the release dismissed all claims against the defendant, his insurer, and “any and all persons, firms or corporations” from claims “growing out of” the accident.  Subsequently, plaintiff sued her UM carrier; however, the court dismisses, holding that the broad language of the release agreement operated as a dismissal of claims against the UM carrier.  Fifth (La.) Circuit, No. 09-CA-686 (3/23/10) (Chehardy, J, dissenting).