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April 27, 2008

Release of Discrimination Claims Valid In Absence of Duress, Fraud or Bad Faith

    A somewhat common occurrence when an employee is discharged is the presentation of a severance and release agreement under which the employer will provide some salary continuation and/or benefits in exchange for the employee's agreement not to file an employment discrimination or related lawsuit.  Where this occurs and there is no duress, fraud or bad faith, the release operates as a bar to any later filed lawsuit requiring its dismissal the Kentucky Supreme Court recently held in Humana, Inc. v. Blose, No. 2006-SC-000783 (available at Kentucky Court of Justice website).

---Robert L. Abell
---www.robertabelllaw.com

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