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Just did this about a couple months ago. You have to go inside. You then take the handle off (two screws after you remove the covers that are over the screws). The take a screw driver and pop the panel off. After that there is a long bar that goes from the latch to the release. I believe all you have to do is pull upwards on that to release it. I thought I had the same problem but the latch was just really jammed. Took some WD40 to it, worked it really well and it works like a dream now.

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Q: 94 Summit Wagon - rear hatchback door won't open - how do you open and replace the latch and handle?
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