Full question:
I was a student at a private university. I filed a lawsuit alleging breach of contract and disability discrimination. We agreed to an amicable settlement, the settlement agreement very broadly waives any right to future claims. Can the university waive my right to file a borrower's defense claim with the Department of Education (DoE) to discharge my student loans? There is some ambiguity here because the claim would be between me and the DoE, but the DoE would make an inquiry with the university in their investigation and potentially hold the university accountable for the debt incurred while attending the university. Also, this claim falls under new legislation created during the Obama administration in Nov. 2016 to protect students from breaches of contract by universities... ("The borrowers defense to repayment") It does not yet have precedent on how the courts are interpreting it. Does my settlement agreement / release of claims waive my right to making such a claim? Thank you
- Category: Contracts
- Subcategory: Releases
- Date:
- State: Oregon
Answer:
The enforceability of your settlement agreement depends on its specific wording. If your claims against the university and the borrower's defense claim are separate and involve different parties, your right to file a borrower's defense claim may not be barred. Additionally, if the cause of action arises after the settlement, it is generally maintainable. Courts typically interpret release language against the party being released, and overly broad language, like 'future claims,' may not be upheld. Each case is unique, so there is no definitive answer.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.