Periodically our clients ask us about the language contained in property damage releases, expressing concern that signing such a document might hypothetically take away their right to pursue a bodily injury claim.
The short answer to this issue is that all claims that are released are only effective to that extent that some form of consideration or compensation flows from the releasor to the releasee. Which typically means that the mere signing of a release form doesn't make it legally effective until money flows from the at-fault party or insurer to the victim for specific claims.
Thus, a payment for property damage and/or rental vehicle, will not affect one's entitlement to bring a personal injury claim in Maryland. Should one carefully read the release? Absolutely. but thus far at Clark and Steinhorn, we have never had an issue with an insurer or at-fault party trying to foreclose an injury claim because of the execution of a property damage release.
Our next blog topic is related but different. It involves insurance company efforts to settle claims before the injured party has an opportunity to recover and where necessary, hire an attorney. Shockingly insurance industry unethical settlement practices necessitated legidlative action to curtail such behavior. More tomorrow.
