Cox v. Pearl Investment Co. Case Brief Summary | Law Case Explained

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Cox v. Pearl Investment Co. | 450 P.2d 60 (1969)

In Cox versus Pearl Investment Company, the court pondered whether a plaintiff’s signing a release of liability with one joint tortfeasor meant that the plaintiff gave up the right to sue all other joint tortfeasors who might be liable for the same accident.

Pearl Investment Company owned property that it leased to Goodwill Industries. Audrey Cox fell and hurt herself on this property.

Cox sued Pearl and Goodwill for negligence. Goodwill paid her $2500 in consideration for signing a covenant not to proceed with the suit against it. This release included language stating that Cox reserved the right to sue any other person against whom she might have a claim of damages from the same accident.

At trial, Pearl argued that Cox’s release of her claims against Goodwill also applied to her claim against Pearl. The trial court applied the rule from Price versus Baker, that, quote “the release of one joint tortfeasor is a release of all,” unquote. Ignoring the words of the release, the court dismissed the case. Cox appealed to the Colorado supreme court.

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