Legal Question in Civil Rights Law in California
Calif. Civil code 1542
What does the follwing mean:'' A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlememt with the debtor''
1 Answer from Attorneys
Re: Calif. Civil code 1542
Usually insurance companies or other settling defendants demand a Civil Code � 1542 release so that the plaintiffs can't later claim they didn't know facts that would have led them to demand more. On the other hand, if there is some undisclosed fact that would lead the plaintiffs to demand a larger settlement, signing the 1542 release waives any claim based on the undisclosed fact or facts.
Usually the plaintiffs just sign the 1542 release and cash their checks.
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