Monday Practice Pointer: Want your settlement to stick? Waive fraud claims expressly.
In Udell v. Udell, 397 So. 3d 1050 (Fla. 4th DCA Nov. 27, 2024), a surviving spouse settled with the trustees of his late wife’s trust, accepting larger monthly payments and waiving the right to receive any other distributions from the trust. He later petitioned to reopen the estate, alleging that the personal representative withheld material information about his rights as the surviving spouse to the wrongful death settlement. The trial court held the settlement barred his claim. The Fourth DCA reversed, because none of the agreements he signed “contained a specific release or waiver for fraud.” Florida District Courts of Appeal, 2024 +2
What’s the takeaway
A general waiver won’t protect a settlement from a fraudulent inducement challenge. If you represent the fiduciary, include an express waiver of fraud claims and make full disclosure of all material facts before the beneficiary signs. For a more extensive discussion, read my earlier post: How to insulate your settlement agreement from being undone on fraudulent inducement grounds