Legal Question in Real Estate Law in Massachusetts

Does cashing check imply acceptance of a settlement?

I volunteer with the Small Claims Advisory Service, and several people of asked whether cashing a check implies acceptance fo a settlement. Typically, the scenario involves a landlord returning part of a security deposit to the plaintiff (after having deducted for damages). While the plaintiff is challenging the deductions, if she cashes in the check for the part of the security deposit that was returned to her, does it mean that she has accepted the deductions? Or can she still sue?

Or in another scenario, an auto repair shop damaged a car and wrote a check to the plaintiff. The plaintiff wants to sue for more money. If she deposits the check, does she give up her right to sue? Has she, in effect, accepted the settlement offer?

Please let me know. Thanks


Asked on 6/27/02, 7:42 pm

1 Answer from Attorneys
Richard Klibaner Klibaner & Sabino

Re: Does cashing check imply acceptance of a settlement?

In general, acceptance of part payment of an amount claimed to be due is not a release unless the person making the payment offers it in return for a release and the person to whom it is offered then accepts it. In other words, if the landlord sends the former tenant a check for a portion of the security deposit and states on the check (including on the back of the check) or in a cover letter that the check is being sent as full payment or as a release of amounts claimed due by the tenant or words with a similar meaning, then the tenant will have waived his or her right to pursue a case for further amounts claimed due if he or she accepts the check. This is probably true even if the tenant crosses out the words about full payment or release before cashing it. However, if there is no indication that the check is being offered as full payment or in return for a release of claims, it will not prevent an action for the remainder of the security deposit or for other damages. It may, however, limit the amount for which the landlord is liable for treble damages to the amount found to be due which has not been paid.

Similar principles apply to the check from the auto repair shop.

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Answered on 6/28/02, 11:03 am


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