The plaintiff’s home was damaged in a fire and she made a claim to her home insurer, Allstate. The plaintiff and Allstate settled the claim. The plaintiff was later unhappy with the settlement, and (together with her husband) commenced an action against Allstate and adjusting company, Sobel, alleging that the settlement was unfair. Allstate and Sobel brought a summary judgment motion on the basis that the action was barred by the settlement. Justice Pollak dismissed the motion, finding that there were triable issues regarding the validity of the release. Justice Pollak also noted that neither the husband nor Sobel were parties to the release and were not bound by it. Regarding Allstate’s reliance on the release Justice Pollak found that the contents of the release were confusing, there were insufficient communications preceding the release to show good faith, and there were no records showing that the plaintiff was explained the contents of the release.
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