Zebroski v. Progressive Direct Insurance Company, C.A. No. 8816-VCP (Del. Ch. April 30, 2014).
This opinion is helpful to address those situations in which an insurance company obtained a release from an injured party and where, afterwards, the insured claims that he was not releasing all of his future claims even though the release so provided. The Court addresses claims of mutual mistake and misrepresentation in connection with the signing of the release. The Court concluded that the case should be heard by a court of law and not a court of equity. (In Delaware, that means a transfer of the case to the Superior Court, Delaware’s trial court of general jurisdiction.)
The Court found that there was no fiduciary relationship between the insurance company and the insured thereby foreclosing an equitable fraud claim. The Court also declined to exercise jurisdiction under the “clean-up doctrine.”