Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 17

While working, an ore bucket hit Henry Kruzich on the side of his face, causing a severe head injury. Old Republic Insurance Co. insured his employer's workers' compensation plan It paid Kruzich total disability and medical benefits. Kruzich ultimately needed domiciliary care, so Old Republic started paying Henry's wife, Kathy, to stay at home and care for him. Six years after the accident, Henry and Old Republic signed a settlement agreement for $132,701 that ended "fully and forever … all present and future domiciliary care" benefits. Ten years later, Henry was diagnosed with Parkinson's disease, most likely from the accident. Henry sought rescission of the settlement agreement on the basis of mutual mistake of fact saying that at the time of the settlement, neither party knew there was any connection between head injuries and Parkinson's disease. Was the agreement rescinded?