Nebraska Supreme Court Finds Release of Liability in Child's Death May Be Void as Fraud - Gonzalez v. Union Pacific
As a Philadelphia accident lawyer, one thing I want all injured people to know is that insurance companies are not their friends. After a bad accident, insurers or other representatives from an at-fault company may approach the victims with money, offering a relatively small payment in exchange for a signature. You should never, ever sign anything or take money from anyone representing the party that caused your accident! This is sometimes a legal document in disguise, and your signature may legally bar you from pursuing any more compensation in the future. That was the case in Gonzalez v. Union Pacific Railroad Company, a Nebraska Supreme Court case involving a waiver of liability unwittingly signed by a grieving mother. The court ultimately sent her case back to trial court, ruling that she should have a chance to prove that the waiver was void because it fraudulently failed to explain that it was a binding mutual understanding.
Efrain Ramos-Domingo, age thirteen, died after being struck by a train at a railroad crossing. His mother, Manuela Domingo Gaspar Gonzalez, was approached two days later by Union Pacific, which offered $15,000 in exchange for her signature on a document releasing the company from liability. Gonzalez spoke no English and had no money. In later court proceedings, she claimed she did not understand the release and the Union Pacific representative did not explain its legal consequences. She later filed a wrongful death and breach of fiduciary duty lawsuit, alleging that the intersection was defectively designed; Union Pacific's operation was negligent; and the release should be void because it was fraudulently obtained. The trial court dismissed the wrongful death claim, citing the release, and also dismissed the fiduciary duty claim after discovery. Gonzalez appealed both decisions.
The Nebraska Supreme Court upheld the trial court on the fiduciary duty claim, but reversed on the issue of the waiver. Union Pacific argued that contracts are generally upheld when the signer had the chance to read them and failed to do so. But in this case, the high court found, Gonzalez had no chance to read it because she expressly pleaded that she cannot read English. Because the Union Pacific representative also didn't explain the meaning of the release, the high court found that this raised enough triable facts to survive a motion to dismiss. It dismissed Union Pacific's argument that Gonzalez had to return the $15,000 in order to rescind the contract. This is true in the case of a legal rescission of a contract, the court said, but in this case, Gonzalez is arguing for an equitable rescission based on the circumstances of the signing. This is essentially a declaration that no contract ever existed. Furthermore, the court said, rescinding a contract for fraud carries no obligation to return money at all. In addition, it said, it would be inequitable to ask Gonzalez to return the money in order to pursue her claim when she has likely spent it on Efrain's funeral. However, the Supreme Court agreed with the lower court that Union Pacific created no fiduciary duty to Gonzalez by "offering to help." It sent the case back to trial court for further proceedings on the wrongful death claim.
This case contains a lesson that all personal injury victims and their families should understand: It pays to be careful when approached by an at-fault company. Any company with enough money, or its insurance company, will try to limit the amount it pays out. While most Philadelphians are fortunate enough to be able to read and speak English, unscrupulous people can still take advantage of them in the time of emotional distress right after an accident. I advise all victims to politely decline offers from insurance company representatives until they have at least had a chance to discuss the offer with me. In fact, if I am your Philadelphia personal injury lawyer, they should never contact you directly; they should always go through my office. While it's tempting to be polite, it is much more important in cases of severe injury or wrongful death to protect your legal rights, including your right to pursue fair compensation.