What are the elements of a legal settlement agreement? When engaged in commercial litigation in Arizona, you may ultimately be able to resolve the dispute with a settlement agreement. The settlement agreement depends on the requirements of the individuals who are in the dispute. So that the parties know they have resolved their disputes, it is advisable that they put any settlement agreement they reach in writing.
What Should Be Included in a Settlement Agreement?
A solid, written settlement agreement will ensure that all major issues associated with the claim have been addressed. There are several various components that should be included in a legal settlement agreement.
Current/Future Legal Claims
This includes stipulations about all current and future legal claims being addressed. This means that if a conflict has already happened, the settlement agreement marks the end of complaints or legal action regarding this issue. This helps to prevent future problems from cropping up again, at the expense and frustration of a party who thought the matter was already concluded. While you might hope that the other party would not try to raise this issue again, it’s a good idea to put this in writing so the expectations are clear between both parties.
Payment of Funds Due/Legal Fees
The settlement agreement should also discuss the payment of any outstanding sums of money owed to one individual by another and may also address the payment of legal fees. In certain situations, an individual may be eligible to receive his or her legal fees paid for by the other party. If this has been discussed as the terms of the settlement, it should be included in the settlement agreement. Individuals may wish to stipulate the terms of how such payments including legal fees will be made from one party to another.
Why Do We Need These Statements in the Agreement?
Having this written down clearly can help to eliminate problems in the future. In business relationships where a settlement agreement concludes an ongoing conflict, there may also need to be a stipulation inside the agreement about sharing of any confidential information. One such example in this situation could involve a concern between an employer and an employee who are parting ways, or a vendor who was working for your business and has inside details about the operations of your company or clients. Including a provision about keeping this confidential information private after the relationship has concluded can be important. A settlement agreement should be drafted and evaluated by an experienced Arizona commercial attorney.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding What Are the Elements of a Legal Settlement Agreement?, or any other litigation matters, please feel free to contact Roger C. Decker at 480.461.5343, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.