Release of Claims Form - California

CALIFORNIA RELEASE OF CLAIMS AND SETTLEMENT AGREEMENT

1. Scope Gate

This form is designed for a negotiated release by a legally competent adult or authorized entity concerning identified California claims. Complete the gate before drafting the release.

2. Parties and Effective Date

This Release of Claims and Settlement Agreement (the “Agreement”) is made on [DATE] by and between:

Releasor: [FULL LEGAL NAME / ENTITY / ADDRESS]

Releasee: [FULL LEGAL NAME / ENTITY / ADDRESS]

Additional releasing or released persons must be identified by name or a definition that counsel confirms is sufficiently precise:

The Agreement becomes effective on [SIGNING / PAYMENT / APPROVAL / DISMISSAL EVENT] (the “Effective Date”).

3. Settled Matter and Claim Inventory

Incident or dispute: [DATE, LOCATION, PEOPLE, EVENT, AND ALLEGED INJURIES OR LOSSES].

Claim numbers, policies, demands, pleadings, or notices: [________________________________].

No release should extend to a person, injury, occurrence, time period, claim, or legal capacity merely because generic words such as “all claims” appear in the form. State the intended scope.

4. Settlement Consideration

In exchange for the releases and promises in this Agreement, Releasee will provide:

Payment method and instructions: [________________________________].

Tax forms or reporting: [________________________________].

No party makes a tax representation unless expressly stated after tax review.

5. Release

Subject to receipt of the consideration and the exclusions below, Releasor releases [IDENTIFIED RELEASED PERSONS] from the following claims belonging to Releasor:

[DESCRIBE CLAIM TYPES, INCIDENT, DATE RANGE, INJURIES, LOSSES, AND WHETHER THE RELEASE IS LIMITED TO CLAIMS ARISING FROM THE SETTLED MATTER].

Release scope:

☐ known claims only;

☐ known and unknown claims within the precisely described settled matter, together with the reviewed § 1542 waiver in Section 6;

☐ mutual release, with Releasee's released claims separately described here: [________________________________].

The release does not transfer or release another person's claim unless that person validly signs in the proper capacity.

6. California Civil Code § 1542 Selection

California Civil Code § 1542 provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Select one route:

☐ No § 1542 waiver. The release does not extend to unknown or unsuspected claims protected by § 1542.

☐ Reviewed § 1542 waiver. Releasor states that Releasor understands § 1542 and intentionally waives its protection only for unknown or unsuspected claims within the release scope stated in Section 5. The waiver does not enlarge that scope, waive an unwaivable right, or release a claim belonging to another person.

Releasor initials for selected waiver: [________]

7. Excluded and Preserved Matters

The release does not include:

1. obligations created by this Agreement;
2. claims arising from breach of this Agreement;
3. claims, benefits, rights, or proceedings that applicable law does not permit the parties to release;
4. claims outside the people, incident, injuries, losses, dates, and scope stated in Section 5; and
5. the following additional exclusions: [________________________________].

8. Liens, Assignments, and Other Interests

Releasor states, after reasonable review:

☐ no released claim has been assigned or transferred except as disclosed below;

☐ assignments, liens, subrogation rights, reimbursement claims, benefit interests, or attorney interests exist as follows: [________________________________].

No party assumes a blanket duty to indemnify another for every lien or benefit claim. Insert a matter-specific allocation only after the identity of the claimant, notice, defense control, settlement authority, payment source, cooperation, and survival period are stated:

[____________________________________________________________]

9. Dismissal, Approval, and Closing Deliverables

No dismissal, lien release, or court filing is deemed completed until the required document is actually accepted or otherwise effective under the applicable process.

10. No Admission

Unless expressly stated otherwise, settlement is a compromise of disputed claims. It is not an admission of liability, fault, causation, damages, or the validity or invalidity of any position.

11. Confidentiality and Communications

Choose only after counsel reviews the claim type, parties, public-record status, tax and benefit reporting, insurer duties, government communications, subpoenas, professional advice, and any nonwaivable disclosure right.

☐ No confidentiality or non-disparagement covenant.

☐ The following reviewed confidentiality covenant applies: [________________________________].

☐ The following reviewed non-disparagement covenant applies: [________________________________].

No covenant prohibits truthful testimony, compliance with legal process, communication with a government agency, required tax or benefit reporting, confidential professional advice, or another communication that may not lawfully be restricted.

12. Breach and Enforcement

A party asserting breach will provide notice describing the breach and requested cure unless emergency relief, legal process, or the nature of the breach makes notice inappropriate. Notice and cure term: [________________________________].

Remedies, damages, interest, fees, costs, equitable relief, bonds, defenses, and mitigation remain governed by the Agreement and applicable law. This form does not impose:

• an automatic prevailing-party fee award;
• indemnification for every breach;
• a liability cap equal to the settlement payment;
• automatic specific performance or an injunction; or
• forfeiture of the settlement for every default.

Any selected contractual remedy must be stated here: [________________________________].

13. Dispute Resolution and California State-Court Jury Rights

Governing law: [CALIFORNIA / OTHER REVIEWED SELECTION].

Venue or forum: [COUNTY / COURT / BASIS].

☐ No arbitration agreement is included.

☐ A separately reviewed arbitration agreement is attached as Exhibit [____].

This Agreement does not contain a predispute waiver of jury trial in a California state court. The California Supreme Court's official EpicentRx opinion explains that the California Constitution preserves civil jury trial subject to waiver as prescribed by statute and that Code of Civil Procedure § 631 permits waiver only through the statutory circumstances, such as filed written consent, oral consent in open court, specified failures, or nonpayment of jury fees.

14. Representations and Final Review

Each signing party represents only that:

1. the party has authority and capacity to sign in the stated capacity;
2. the party has reviewed the Agreement and signs voluntarily;
3. the party has had the opportunity to consult independent counsel and tax, benefits, and financial advisers; and
4. any assignment, lien, or third-party interest known after reasonable review is disclosed in Section 8.

Final checks:

☐ Every released person and claim is identified.

☐ Consideration, payees, conditions, and deadlines are complete.

☐ The § 1542 selection matches the intended scope.

☐ Capacity, minor, lien, benefit, approval, and tax gates are resolved.

☐ Confidentiality and communications restrictions were separately reviewed.

☐ No generic liability cap, fee indemnity, or California state-court predispute jury waiver remains.

15. General Terms

• Entire agreement: This Agreement and its listed exhibits contain the parties' agreement concerning the settled matter.
• Amendments: A change must be in a signed writing that identifies this Agreement.
• Severability: A court may address an unenforceable term without expanding the release beyond Section 5.
• Counterparts: The parties may sign counterparts using a method counsel confirms is valid for the transaction and any required approval or filing.
• Notices: [METHOD / ADDRESS / WHEN EFFECTIVE].

16. Signatures

Additional releasor or required consenting party:

Signature: ______________________________________

Name and capacity: [________________________________]

Date: [________________]

Counsel approval, if used:

Exhibits

• Exhibit A: Detailed claim and incident schedule
• Exhibit B: Payment, lien, benefit, and tax allocation
• Exhibit C: Dismissal, approval, satisfaction, or closing documents
• Exhibit D: Separately reviewed arbitration or confidentiality terms, if any

Practice Notes — Remove Before Signing

• The current § 1542 wording uses “creditor or releasing party” and “debtor or released party.” Do not use the pre-2019 text or label it “West 2023.”
• A § 1542 waiver addresses unknown claims; it does not identify the transaction scope, cure a missing releasor, waive another person's rights, or eliminate nonwaivable protections.
• The citation pre-screen did not resolve the very recent reporter cite 18 Cal. 5th 58. The official California Supreme Court opinion at docket S282521 was read directly and controls the jury-right statement used here.
• A personal-injury settlement is not complete merely because the claimant signs. Resolve capacity, liens, benefit programs, assignments, approvals, payees, dismissal, and tax reporting before disbursement.

Official References

• California DOJ executed settlement reproducing current Civil Code § 1542 — https://oag.ca.gov/system/files/attachments/press-docs/TPC%20Fully%20Executed%20Settlement%20Agreement%20%281%29.pdf
• EpicentRx, Inc. v. Superior Court, No. S282521 (Cal. July 21, 2025) — https://www.courts.ca.gov/opinions/archive/S282521.PDF