Allen v. Riese Organization, Inc.
Plaintiffs, former maintenance workers, were terminated and signed severance agreements releasing all employment-related claims, including those under human rights laws, in exchange for severance pay. Approximately three years later, they filed a lawsuit against their former employer, A.R.O. Construction Corp., alleging race discrimination, retaliation, and a hostile work environment. Defendants moved to dismiss the complaint, arguing the releases barred the claims. While plaintiffs contended the releases were procured by duress and fraud, the appellate court determined that plaintiffs had ratified the agreements by accepting the severance payments and failing to promptly repudiate the releases. Consequently, the appellate court reversed the lower court's denial of the motion to dismiss and ordered the dismissal of the plaintiffs' complaint.