Car Defect Settlement

[markheardjr]

Hey all,

 

I bought a new car. The transmission was defective and replaced under warranty. It took 11 weeks because of parts availability and other issues. The car manufacturer, offered a good faith reimbursement of 4 months worth of payments ($2,000 ish.) They sent me a letter to sign and send back, but it worries me they are trying to get me to agree to never dispute / receive reimbursement for any other issues (even not related to the transmission) forever on the this car.  

 

Item C is what concerns me, is this a valid concern? I'm am ok releasing future claims to this specific part issue. but not all future non-related issues with the car that could happen down the line.

 

RECITALS

A.     A dispute has arisen between Claimant and XXX regarding a 2021 XXX bearing vehicle identification number XXX  (hereinafter referred to as “Subject Vehicle”).

B.     Claimant has complained of irregularities, misrepresentations, defects, non-conformities and problems relating to the Subject Vehicle.

C.     Claimant and XXX wish to settle all existing disputes as well as any and all past, present, future, known and unknown disputes regarding the Subject Vehicle.

D.     It is understood that the manufacturer’s existing warranties on the Subject Vehicle will remain effective only as to Claimant’s right to obtain repairs covered under the warranty.

 

AGREEMENT

3. Claimant hereby releases and fully discharges XXX, XXX authorized repair facilities, any seller or selling dealer of the Subject Vehicle, claimant's finance company, and any and all other defendants and potentially liable parties, and each of their predecessors, successors, subsidiaries and affiliated entities, parents, partners, officers, directors, shareholders, agents, employees, representatives, attorneys, successors and assigns, past and present, and each of them (hereinafter referred to as the "Releasees") from any and all claims, demands and causes of action of any and every kind and nature, without limitations, whether known or unknown, suspected or unsuspected, which Claimant now owns or holds or at any time hereafter may accrue or otherwise acquire against the Releasees arising out of, resulting from, or in any way related to the above Recitals. In the event Claimant has filed any action, lawsuit, litigation, claim or complaint, legal, administrative or otherwise, with respect to this matter, Claimant hereby agrees to dismiss said action, lawsuit and/or litigation with prejudice as to all parties and/or to withdraw said claim or complaint forthwith.

 

4. Section 1542 of the California Civil Code, provides that:

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

Claimant knowingly and voluntarily waives the provisions of §1542, and acknowledges and agrees that this waiver is an essential and material term of the Agreement that led to it, and that, without such waiver, the settlement would not have been entered into. Claimant acknowledges his/her understanding that the effect of the Agreement is to waive and release all future potential claims for damages which were or may have been suffered but which have not yet manifested themselves.