Arbitration & Mediation

Workers Compensation Claim Release of "Affiliate" Entities Was Not Ambiguous

By Christopher B. Hopkins, Esq.

Watch the wording of tort and workers compensation claim releases. At least that's the message in Robert and Joyce Churchville v. GACS Incorporated, Ryder Automotive Operations, et al.

A man worked for a company (Allied Systems) which, over the years, merged several times. During his years of employment, he was injured twice. Sometime thereafter, his employer was a "surviving corporation" called GACS. The man filed a workers compensation claim, which settled. A release was signed which resolved the workers compensation claim and released "Allied Systems, Ltd. and its subsidiaries, affiliates, parent companies..."

GACS was not a subsidiary. The court explained how it was not a parent company. Resorting to Black's Law Dictionary, the First DCA held that GACS was, ultimately, an "affiliate." The Court went on to say this was not ambiguous. Moreover, even though the release never mentioned a tort claim (as opposed to a comp claim), it still released GACS for any related tort claims.

In the end, it appears the plaintiff's entire claim was extinguished with the workers' compensation claim release.

Full post as published by Florida Arbitration Law on February 12, 2008 (boomark / email).