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Appeals court weighs whether federal settlement release bars state defamation suit against trustee
Summary
The Appeals Court heard a dispute over whether a settlement release tied to a federal civil-rights case bars a later state defamation claim against an individual trustee; attorneys disagreed about how broadly the federal release extinguished claims “arising out of or relating to” the federal complaint’s allegations.
The Massachusetts Appeals Court considered whether a settlement agreement resolving a federal civil‑rights suit precluded a later state‑court defamation claim against a trustee whose allegedly false statements were not expressly pleaded in the federal complaint.
The practical question before the court was whether a broadly worded release in the settlement — which said it covered “all claims of every kind, nature, and description … arising out of or relating to the allegations set forth in the federal complaint” — was intended to bar the distinct state defamation lawsuit the plaintiff later filed.
Douglas Hausler, representing appellant Jeffrey Hagopian, told the panel the release language is ambiguous and should be construed against the drafter; he argued the federal complaint…
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