The loss of the right to sue depends on whether or not the payment of $10,000 was made as a full and final settlement of the dispute between the parties. If Mr. Wong had specifically indicated that such payment was for settlement purposes and the same was accepted by Mr. Lee, it is likely that Mr. Lee has agreed under the terms of the settlement to forego any rights to seek further compensation. One should inquire whether there is any written proof to the same effect. This is a question of fact.
Death of the Defendant (Mr. Wong)
If Letters of Administration or a Grant of Probate has been granted, then the legal action survives and continues against the administrators or executors of the defendant's estate as normal.
If there is no grant of probate or letters of administration, then the plaintiff, Mr. Lee, may commence legal action against the estate of the defendant. He must apply to the Court for an order that appoints someone to represent the defendant's estate (for the purpose of the legal proceedings) and an order that proceedings be carried out against the representative. A subsequent court judgment or order in such proceedings is binding upon the defendant's estate to the same extent and in the same way as if the grant of probate or letters of administration had been made.