Sanchez v. Moshenko CA4/3
The issue presented by this appeal is whether the term “without prejudice” in a settlement agreement used in reference to withdrawal or dismissal of claims is ambiguous and can be construed to mean “with prejudice.”
A settlement agreement between Appellants and Respondent, Brian Moshenko, has a provision requiring both sides to dismiss or withdraw without prejudice their respective claims. Appellants later refiled their claims. At trial, there was conflicting testimony from several parties about their respective, subjective understanding of the meaning of the term “without prejudice” but no testimony that anybody conveyed that understanding to another person. In light of this testimony and other provisions of the settlement agreement, the trial court concluded the term “without prejudice” is ambiguous and the agreement constituted a full release of, and a full defense to, Appellants’ claims.
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