Clark v. Elza
Court of Appeals of Maryland
406 A.2d 922 (1979)
Floyd and Myrtle Elza (defendants) were in a car accident with Clark's decedent (plaintiff). The parties agreed to settle Clark's claim, and Clark's attorney signed a covenant not to sue in exchange for a promise of future payment. When the Elzas failed to pay, Clark sued for breach of the original tort claim rather than for breach of the settlement agreement itself. The Elzas argued the settlement agreement had already fully discharged and replaced the original claim, leaving Clark with only a breach-of-contract remedy for the settlement, not the original tort action.
Whether an agreement to discharge a pre-existing claim, made in exchange for a future promise of performance, is regarded as an executory accord that leaves the original claim intact until performance is completed.