Cox v. Pearl Investment Co.

450 P.2d 60 (1969)

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Cox v. Pearl Investment Co.

Colorado Supreme Court
450 P.2d 60 (1969)

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Facts

Mrs. Cox (plaintiff) fell and was injured on a property owned by Pearl Investment Co. (Pearl) (defendant). Subsequently, the tenant of the property, Goodwill Industries paid Cox $2,500 in a settlement in exchange for a signed document entitled “Covenant Not to Proceed with Suit” (Covenant). The Covenant contained a clause reserving Cox the right to sue anyone else for damages arising out of the accident. Based on a precedent set in Price v. Baker (1959), the trial court ignored the clause and granted summary judgment to Pearl, holding that Cox’s recovery from Goodwill Industries released Pearl from liability. Cox appealed.

Rule of Law

Issue

Holding and Reasoning (Hodges, J.)

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