Release of All Claims - Alabama

RELEASE OF ALL CLAIMS

(State of Alabama)

1. PARTIES

This Release of All Claims (this "Release") is made and entered into on [__/__/____] by and between:

For purposes of this Release, "Released Parties" means the Releasee(s) named above and these additional persons or entities, if any: [IDENTIFY EACH ADDITIONAL RELEASED PERSON OR ENTITY, OR WRITE “NONE”].

The person responsible for the Settlement Sum is [PAYER LEGAL NAME] ("Payer"), whose signature appears below. The Payer is [Releasee / Insurer / Other: __________].

2. RECITALS

A. On or about [__/__/____], at or near [________________________________] (the "Incident"), the Releasor allegedly sustained bodily injuries, damages, and losses arising out of [describe incident — e.g., motor vehicle collision, premises condition].

B. The Releasor has asserted or may assert a claim for damages against the Releasee(s) arising out of the Incident. The claim is identified as Claim No. [________________________________] under Policy No. [________________________________] issued by the Insurer.

C. The Parties desire to fully and finally compromise, settle, and resolve all claims arising out of the Incident, without further litigation and without any admission of liability.

3. CONSIDERATION

In consideration for this Release, the Payer shall pay the Releasor or the recipient authorized under Section 12 the total sum of [AMOUNT IN WORDS] Dollars ($[____]) (the "Settlement Sum") by [PAYMENT METHOD] no later than [__/__/____]. If a court order or other approval is required for a minor or protected Releasor, payment shall instead be due within [____] days after that approval becomes effective, to the recipient or account it authorizes: [PAYMENT DETAILS / NOT APPLICABLE]. This Release takes effect only when the full Settlement Sum has been received in cleared funds by the Releasor or authorized recipient and any required approval under Section 12 has become effective. The Releasor acknowledges receipt and sufficiency of the consideration only upon that payment. The Releasor agrees that the Settlement Sum constitutes the entire consideration for this Release and that no other promise or inducement has been made.

4. RELEASE OF ALL CLAIMS (KNOWN AND UNKNOWN)

4.1 General Release. In consideration of the Settlement Sum, the Releasor hereby releases, acquits, and forever discharges the Released Parties from any and all claims, demands, actions, causes of action, damages, costs, loss of services, expenses, and compensation of every kind and nature whatsoever, whether in contract or in tort, whether known or unknown, suspected or unsuspected, anticipated or unanticipated, fixed or contingent, that the Releasor owns now or may hereafter own arising out of or in any way connected with the Incident, including all known and unknown injuries and all future developments, consequences, or complications thereof. This Release does not purport to discharge a lien or reimbursement right held by a person who is not a party to it; Section 7 addresses identified interests.

4.2 Unknown Claims. The Releasor understands and agrees that this Release extends to claims the Releasor does not know or suspect to exist at the time of execution, and that the discovery of additional or different facts or injuries shall not affect the finality of this Release. The Releasor expressly assumes the risk that the injuries or damages may be more numerous or more serious than now known or expected.

5. EFFECT ON OTHER TORTFEASORS / RESERVATION OF CLAIMS

Select one:

☐ Reservation (release of settling parties only). This Release discharges only the Released Parties named herein. The Releasor expressly reserves all claims against any other person or entity who may be liable for the Incident. The parties intend this Release to have that limited effect under Ala. Code § 12-21-109. Any credit against a later recovery is governed by applicable law and the terms of this Release.

☐ General release (all tortfeasors). This Release is intended to and does discharge all persons and entities liable or claimed to be liable for the Incident, whether named herein or not.

6. NO ADMISSION OF LIABILITY

It is understood and agreed that this settlement is a compromise of a doubtful and disputed claim, that payment is not to be construed as an admission of liability on the part of any of the Released Parties, and that the Released Parties expressly deny liability and intend merely to avoid the expense and uncertainty of litigation.

7. MEDICAL LIENS, SUBROGATION, AND MEDICARE / MEDICAID (MSP) ACKNOWLEDGMENT

7.1 Identified interests. The Parties will list each known lien, reimbursement claim, or conditional-payment demand, its present status, and the person responsible for obtaining a final amount and making payment: [CLAIMANT, BASIS, AMOUNT OR PENDING STATUS, RESPONSIBLE PERSON, PAYMENT OR HOLD]. An interest that is disputed or pending is not represented as paid.

7.2 Medicare status. The Releasor states that the Releasor [☐ is / ☐ is not / ☐ does not know if they are] a Medicare beneficiary. Any known Medicare conditional-payment case is [IDENTIFIER, CURRENT STATUS, AND PERSON HANDLING RESOLUTION OR “NONE KNOWN”]. Any separate future-medical allocation is [IDENTIFY AGREEMENT OR “NONE”].

7.3 Allocated responsibility. The Parties allocate responsibility for the identified interests as stated in Section 7.1. This Release creates no blanket indemnity for unidentified claims, penalties, or another person's independent obligations. Any separately negotiated indemnity is [PRECISE CLAIM, BENEFICIARY, LIMIT, AND CONDITIONS OR “NONE”].

8. DERIVATIVE, SPOUSAL, AND CONSORTIUM CLAIMS

This Release covers only claims owned by the Releasor. A spouse or other person who independently holds a claim is included only if that person is identified as an additional releasor, the claim is described here [________________________________], and that person signs this Release in that capacity.

9. REPRESENTATIONS AND WARRANTIES

The Releasor represents and warrants that the Releasor:

a. has not assigned, pledged, or transferred any claim released herein to any other person or entity;
b. is of legal age and sound mind and competent to execute this Release (see Section 12 if the Releasor is a minor or incapacitated person);
c. has read this Release in full, understands its terms, and signs it voluntarily;
d. has had the opportunity to consult with independent legal counsel of the Releasor's choosing; and
e. is not relying on any statement or representation not contained in this Release.

10. CONFIDENTIALITY (OPTIONAL)

☐ The Parties agree to keep the terms and amount of this settlement confidential, except as required by law, for tax or lien-resolution purposes, or to enforce this Release.

11. GOVERNING LAW

This Release shall be governed by and construed in accordance with the laws of the State of Alabama, without regard to its conflict-of-laws principles. If any provision is held unenforceable, the remaining provisions shall continue in full force and effect.

12. MINOR'S OR INCAPACITATED PERSON'S COMPROMISE

☐ The Releasor is a minor or incapacitated person. This Release is executed by [NAME OF NEXT FRIEND / GUARDIAN / CONSERVATOR], as [next friend / guardian / conservator] of [MINOR/WARD NAME]. If a court's approval is required for this compromise, this Release is conditioned on that approval and shall not bind the minor or incapacitated person before it is obtained. Counsel will identify the required court proceeding, representation, and method of holding or paying the proceeds: [DETAILS].

Court / Case No. (if approved): [________________________________]

13. EXECUTION

IN WITNESS WHEREOF, the Releasor has executed this Release of All Claims on the date set forth below.

RELEASOR

Signature: _______________________________
Printed Name: [________________________________]
Date: [__/__/____]

PAYER (accepting the payment obligation in Section 3)

Signature: [________________________________]
Printed name and capacity: [________________________________]
For: [PAYER LEGAL NAME]
Date: [__/__/____]

STATE OF ALABAMA
COUNTY OF [________________]

Before me, the undersigned authority, personally appeared [________________________________], who is known to me or who produced [________________________________] as identification, and who acknowledged before me that he/she executed the foregoing Release of All Claims freely and voluntarily for the purposes therein expressed.

Acknowledged before me this [____] day of [____________], [____].

_______________________________
Notary Public
My Commission Expires: [__/__/____]

Sources and References

• Ala. Code § 12-21-109 — Effect of written releases and pro tanto settlements: https://alison.legislature.state.al.us/graphql
• Ala. Code § 26-2A-6 — Limited payment or delivery owed to a minor: https://alison.legislature.state.al.us/graphql
• Ala. R. Civ. P. 17(c) — Representation of minors and incompetent persons: https://judicial.alabama.gov/docs/library/rules/cv17.pdf
• Medicare Secondary Payer Act, 42 U.S.C. § 1395y(b): https://www.govinfo.gov/content/pkg/USCODE-2024-title42/pdf/USCODE-2024-title42-chap7-subchapXVIII-partE-sec1395y.pdf