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Keywords

settlementdefendantleaserescission
settlementleaserescission

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Mack v. Albee Press, 263 A.D. 275, 32 N.Y.S.2d 231

Facts

On March 14, 1939, Frank P. Mack, aged sixty-two, was injured when a heavy printer's knife fell on his left foot at Albee Press's premises. Although the jury found the defendant negligent, it was revealed that Mack had diabetes, which he did not disclose to the defendant. After the accident, Mack received a settlement of $275 in exchange for a release of all claims, believing he would recover quickly. However, his condition worsened, leading to the amputation of his leg due to complications from diabetes.

On March 14, 1939, Frank P. Mack, aged sixty-two, was injured when a heavy printer's knife fell on his left foot at Albee Press's premises.

Issue

Did the execution of the release by Frank P. Mack constitute a mutual mistake of fact that would allow for its rescission?

Did the execution of the release by Frank P. Mack constitute a mutual mistake of fact that would allow for its rescission?

Rule

A settlement may be rescinded if it was made under a mutual mistake of fact; however, if both parties are aware of the injury but miscalculate its consequences, the settlement is irrevocable.

A settlement may be rescinded if it was made under a mutual mistake of fact; however, if both parties are aware of the injury but miscalculate its consequences, the settlement is irrevocable.

Analysis

The court determined that while both parties miscalculated the future consequences of Mack's injury, there was no mutual mistake of fact regarding the nature of the injury itself. Mack was aware of his diabetic condition, which could lead to serious complications, while the defendant was unaware of this condition. The court held that the uncertainties surrounding the injury's future effects were considered by both parties when they agreed to the settlement.

The court determined that while both parties miscalculated the future consequences of Mack's injury, there was no mutual mistake of fact regarding the nature of the injury itself.

Conclusion

The appellate court reversed the lower court's judgment and dismissed Mack's complaint, concluding that the release was valid and not subject to rescission due to mutual mistake.

The appellate court reversed the lower court's judgment and dismissed Mack's complaint, concluding that the release was valid and not subject to rescission.

Who won?

Albee Press, Inc. prevailed in the case because the court found that there was no mutual mistake of fact that would invalidate the release signed by Mack.

Albee Press, Inc. prevailed in the case because the court found that there was no mutual mistake of fact that would invalidate the release signed by Mack.

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