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

Exercise 4

In order to move to a new home, Ellis and Rachel Adams rented a U-Haul truck. The truck got stuck in snow, and Mark Peak, who was helping them move, put a plywood board under a tire. When Ellis accelerated, the board shot into Peak's leg, causing severe bone fractures. His medical bills exceeded $50,000. Peak hired lawyer Stephen Fieweger, who agreed to settle with U-Haul and its insurer for $20,000. Peak signed the insurer's release, which stated he discharged Ellis Adams, U-Haul, and the insurance company from the accident. The check stated that it was in "FULL AND FINAL SETTLEMENT OF ANY AND ALL CLAIMS." Fieweger then tried to recover against Ellis Adams' automobile insurer by asserting Adams' fault. The insurer got a copy of the release and denied coverage, claiming that Ellis was released. Peak claimed there had been mutual mistake about the release and that it was not effective. Was there mutual mistake?