Mallette v. Taylor & Martin, Inc.

The majority relies on the rule announced in Ericksen v. Pearson, 211 Neb. 466, 319 N.W.2d 76 (1982). The rule in that case provides that where liability is based upon the doctrine of respondeat superior, “a valid release of either of the parties to the principal-agent relationship releases the other.” Id. at 478, 319 N.W.2d at 82.

The rule is illogical in the context of a third party’s release of the principal, and should not be applied in this case. As stated in Hill v. McDonald, 442 A.2d 133, 138 n.5 (D.C. 1982):

Certainly, as a matter of logic, it is hard to see how a principal could still…