Many people believe that once they sign a release after a car accident, they can never pursue additional compensation. While that is generally true, a recent decision from New York’s Appellate Division, Second Department, shows that there are important exceptions.
In Preston v. Creta, 2026 NY Slip Op 03655 (2d Dep’t June 24, 2026), the plaintiff signed a general release just three days after the accident in exchange for $2,500. Later that month, MRI studies allegedly revealed serious injuries requiring surgery that had not been diagnosed during his initial hospital visit.
The plaintiff claimed that the insurance company contacted him shortly after the accident, multiple times, and led him to believe he was signing paperwork so that his hospital bills could be paid—not that he was settling all future injury claims.
The trial court dismissed the lawsuit based on the signed release. However, the Second Department reversed, holding that questions of fact existed as to whether the release was fairly and knowingly made. As a result, the plaintiff was allowed to proceed with his personal injury claim.
A takeaway from this case: Although a signed release will often bar future claims, it is not always the final word. Where there are allegations of misunderstanding, unfairness, or overreaching, New York courts may allow a plaintiff to challenge the validity of the release.
Assuming the plaintiff’s allegations are ultimately proven true, this case also serves as a reminder that injured individuals should fully understand any settlement documents before signing them. Resolving a claim before the nature and extent of one’s injuries are known may result in giving up valuable legal rights for far less than the claim may ultimately be worth.
Before signing any settlement documents following a motor vehicle accident, it is important to understand exactly what rights you may be giving up. Consulting with an experienced personal injury attorney beforehand can help ensure that you fully understand the consequences of signing a release and make an informed decision about your legal rights.
Salvatore R. Marino, Esq.