Anthony Leco v. Martin Operating Partnership L.P., et al.
Anthony Leco, plaintiff, was employed by Martin Marine, defendant, as a seaman and member of the crew of the M/V Lori Johnson. Leco injured his left arm, wrist, and lower back when he fell in the vessel’s lavatory, Martin’s adjuster, arranged for Leco’s treatment for his injuries.
Martin’s adjuster contacted Leco and offered a settlement of $10,000 and Leco agreed to accept the offer, Leco met with Tommy Halverson, Hirschfields’s (adjuster) partner, signed a release and accepted the $10,000.
Leco then filed a complaint against Martin Operating Partnership under the Jones Act and general maritime law. The parties agreed to proceed to a one-day bench trial on the sole issue of enforceability of the “Receipt and Release” executed by Leco.
Was the “Receipt and Release” signed by Leco enforceable as to bar Leco’s subsequent Jones Act/ General maritime law claims against his employer, Martin Operating?
Leco maintained that he misunderstood his conversation with Martin’s adjuster (Hirschfield) about the scope of the settlement and Halverson’s explanation of the “Receipt and Release” and the content of the release.
Leco testified that he believed he was agreeing to an advance of maintenance payments, not a release of his negligence claims against his employer.
Martin Operating points to the recording of the meeting. Leco released his claims and received a check for $10,000 in settlement of those claims. In the recording, Leco acknowledged that he understood his rights and that his financial circumstances were the reason for entering into the settlement and accepting $10,000. The Court found that the testimony, that Leco did not understand the terms of his settlement, was not credible. The settlement agreement established that Leco released all of his rights against his employer and all claims related to his accident.
This Court found that Martin Operating carried their burden of proving that the release was enforceable and as such, found that Leco had released all future claims against his employer, arising from his accident.
Before signing any agreement or accepting any consideration in light of a potential claim regarding an accident it is important to contact a lawyer in order to become educated as to potential claims that may be available.
Here, the plaintiff quickly settled for $10,000 whereas a successful Jones Act claim could have properly compensated the plaintiff for much more.
Steve Gordon
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