What does this clause mean in a property damage release and why is it in there? 16 Answers as of October 22, 2013

"...And that the payment is not to be construed as an admission of liability by the parties hereby released by whom such liability is expressly denied."

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Law Offices of John W. Merting, P.A.
Law Offices of John W. Merting, P.A. | John W. Merting
Standard release words- like pleading no contest in a criminal trial. We are paying ,but not admitting liability so no other persons can use the settlement as proof of the settling parties fault and liability.
Answer Applies to: Florida
Replied: 10/22/2013
Ellis & Abouelsood | John Danelon
The phrase means that the person is willing to pay the amount of money specified but does not admit they are paying the amount for being responsible for any tort or crime. The phrase is entered so that it cannot be construed as an admission of guilt or liability if suit is later brought.
Answer Applies to: California
Replied: 10/22/2013
Candiano Law Office
Candiano Law Office | Charles J. Candiano
Liability in Property damage and personal injury claims are determined independently.
Answer Applies to: Illinois
Replied: 10/21/2013
Belushin Law Firm, P.C.
Belushin Law Firm, P.C. | Vel Belushin
Basically that there is no admission of being at fault in the accident with this settlement.
Answer Applies to: New York
Replied: 10/21/2013
Vasilaros Legal,LLC
Vasilaros Legal,LLC | Steven T. Vasilaros
It is a standard clause used by all insurers. It simply means that the Insurer is not admitting fault by paying your damages. Of course, if they did not believe they were at fault, they would never pay. Thus, really, it is meaningless.
Answer Applies to: Florida
Replied: 10/21/2013
    Gregory M Janks, PC
    Gregory M Janks, PC | Gregory M Janks
    In any Release the defendant's will deny liability and indicate that they are simply making a business decision to buy peace by settling. They don't want any admission of liability to be publicized and/or used in subsequent litigation. It is a typical clause.
    Answer Applies to: Michigan
    Replied: 10/21/2013
    Di Giacomo & Gruss | Christopher Di Giacomo
    The language simply means that we have agreed to resolve the legal issue for an amount and that by agreeing to settle we do not admit fault.
    Answer Applies to: Massachusetts
    Replied: 10/21/2013
    Beaver Holt Sternlicht and Courie, P.A.
    Beaver Holt Sternlicht and Courie, P.A. | Mark A. Sternlicht
    This is a fairly standard provision in releases. It means that even though the insurance company paid for property damage, the company is not admitting that it or its insured is liable. If the company paid the full value of the property damage, the company accepted responsibility, but the fact that it paid for the property damage cannot be used against the company or its insured in any other proceeding.
    Answer Applies to: North Carolina
    Replied: 10/21/2013
    Paul Whitfield and Associates P.A.
    Paul Whitfield and Associates P.A. | Paul L. Whitfield
    Releases release but they usually don't admit fault. What difference does it make it you get your money if you don't get paid that is another matter.
    Answer Applies to: North Carolina
    Replied: 10/21/2013
    Law Offices of Ronald A. Steinberg & Associates | Ronald A. Steinberg, BA, MA, JD
    Just what it says. They are paying but not admitting that they did anything wrong.
    Answer Applies to: Michigan
    Replied: 10/21/2013
    A. Dawn Hayes & Assoc. P.A.
    A. Dawn Hayes & Assoc. P.A. | A. Dawn Hayes
    It simply means that both parties have reached a settlement which is a compromise of the issues and neither party "wins" or "looses".
    Answer Applies to: Florida
    Replied: 10/21/2013
    ROBOL LAW OFFICE | RICHARD T. ROBOL
    This is a standard clause. It permits the party paying money (and its insured)to take the position that the payment does not constitute an confession that the paying party was legally-required to make the payment. There are a number of reasons why a paying party may want such a clause, such as collateral estoppel issues (e.g. if there are personal injury claims that may be asserted against the paying party or its insured in the future); media relations; and internal organizational concerns.
    Answer Applies to: Ohio
    Replied: 10/21/2013
    John Russo | John Russo
    Its obvious what the clause means, you reached a settlement out of court, the liable party has agreed to pay, and you have agreed to accept a sum certain to settle all claims. With this agreement you have agreed to relinquish any and all future property damage claims against them arising out of that incident, they in turn are not admitting to any liability.
    Answer Applies to: Rhode Island
    Replied: 10/21/2013
    Johnson & Johnson Law Firm, PLLC | Richard Johnson
    Boilerplate. They never admit fault. They buy their peace.
    Answer Applies to: Washington
    Replied: 10/21/2013
    Kevin H Pate
    Kevin H Pate | Kevin H Pate
    It means both sides agree that this is a settlement of a dispute, Both sides agree that settling the matter does not establish any wrongful or negligent conduct by the paying party. Makes sense. The matter has not been to court. No evidence presented or ruled upon. Injured party gets paid without the expense of trial or the risk of losing at trial. Paying party gets to pay a known amount, no finding of liability, no coming back for more.
    Answer Applies to: Oklahoma
    Replied: 10/21/2013
    Chen Kasher, Esq.
    Chen Kasher, Esq. | Chen Kasher
    It means they do not necessarily accept liability (i.e., fault) for what happened to you, but they will settle the claim in order to avoid further litigation.
    Answer Applies to: Illinois
    Replied: 10/21/2013
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