Mutual Release and Settlement Agreement

An introduction to our settlement template:

As a public service, we provide a template for a settlement agreement that we frequently employ in our cases. If you are considering settling a case you should seek legal advice from an experienced personal injury lawyer or wrongful death lawyer to understand the rights you may be giving up as part of the settlement. This includes whether you want to employ a modified form of this template or have to sign a release sent to you by an insurance company.

We are happy to discuss your case to see if you or your client might be entitled to more than you are being offered. Call us at (415) 940-7176 for a free initial consultation.

Mutual Release and Settlement Agreement

This Mutual Release and Settlement Agreement (“Agreement”) is entered into between the following parties (“the Parties”): Plaintiff [Plaintiff Name] (“Plaintiff”), and defendant ­[Defendant Name] (“Defendant”).

Recitals

Plaintiff filed a civil action against Defendant, [County Name] County Superior Court Case Number [Case number] (the “Civil Case”).

To avoid the time and expense of litigation, the Parties want to resolve their differences and reach an end, compromise, and settlement for all disputes existing and potentially existing between them from the Incident.

Agreement

In consideration of the mutual execution of this Agreement and the releases and promises made in the Agreement by the Parties, the Parties agree as follows:

1. In exchange for complete resolution of this matter, Defendant shall pay to Plaintiff [Settlement amount in numbers and spelled out]. This payment (the “Settlement Funds”) will be paid in trust for the benefit of Plaintiff to “Rouda Feder Tietjen & McGuinn” upon execution of this Agreement and completion of the terms outlined in paragraph 2. Rouda Feder Tietjen & McGuinn’s Tax Identification Number is 94-2854660.

2. Rouda Feder Tietjen & McGuinn (“Plaintiff’s Attorney”) shall provide the original of this Agreement, executed by Plaintiff, to Defendant’s attorney. Defendant’s attorney will then have the Settlement Funds sent to Plaintiff’s Attorney. Upon receipt of the Settlement Funds by Plaintiff’s Attorney, and subject to those funds clearing the bank and becoming available for disbursal by Plaintiff’s Attorney, Plaintiff shall submit to Defendant a signed Request for Dismissal of the Civil Case with prejudice as to the entirety of the Civil Case, with each side to bear their own attorneys’ fees and costs. Plaintiff further agrees that she will not attempt to refile the Civil Case, or any portion of it in the same or any other jurisdiction. Once the foregoing has occurred, Plaintiff’s Attorney may disburse funds from the Settlement Funds to Plaintiff.

3. Plaintiff further agree that upon receipt by Plaintiff’s Attorney of the Settlement Funds, Plaintiff will indemnify and defend Defendant against any liens for services provided to Plaintiff arising out of the injuries and claims referenced in the Civil Case. Plaintiff will release and hold Defendant and its insurers free and harmless from any and all such liens.

4. It is further understood and agreed by the Parties that all rights under section 1542 of the California Civil Code, and any similar law of any state or territory of the United States, are hereby waived as to claims which those parties released do not know or suspect to exist at the time they execute this release. This section reads as follows:

A general release does not extend to the claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.

The Parties agree as a further consideration and inducement for this compromise and release of claims that the releases contained in this Agreement shall apply to all unknown and unanticipated injuries and damages resulting from said accident, as well as those now disclosed.

5. This Agreement constitutes a compromise, settlement, and release of disputed claims and is being entered into solely to avoid the burden, inconvenience, and expense of litigating those claims. No Party to this Agreement admits any liability to the other Party with respect to any such claim or any other matter. Each Party expressly denies liability as to every claim, which may be asserted by the other Party. Therefore, this Agreement is not to be and shall never be construed or deemed an admission or concession by any of the Parties hereto of liability or culpability at any time for any purpose concerning any claim being compromised, settled, and released, or any other matter.

6. The Parties agree to act in good faith and to cooperate fully with each other in carrying out the intent of this Agreement, and for that purpose agree to execute all additional documents as may prove reasonably necessary to accomplish that intent.

7. The Parties shall each bear their own costs and attorney fees incurred in connection with this Agreement, and each waives the right to make a claim against the other for such costs, attorney fees or any other expenses associated with the matters being settled here.

8. The failure of any Party at any time to require performance of any provision of this Agreement shall not limit that Party’s right to enforce the provision, nor shall any waiver of any breach of any provision constitute a waiver of that provision itself.

9. This Agreement shall inure to the benefit of and shall be binding upon each of the Parties here and their respective agents, representatives, executors, administrators, trustees, personal representatives, partners, directors, officers, shareholders, agents, attorneys, insurers, employees, representatives, predecessors, successors, heirs and assigns.

10. The Parties agree that the laws of the State of California shall be utilized in construing this Agreement and in enforcing the rights and remedies of the Parties. Any litigation arising out of a dispute concerning the Agreement shall be litigated in [County where lawsuit was filed], California. The Parties agree to venue in that jurisdiction for all such disputes concerning this Agreement.

11. If any suit or action or other proceeding is commenced to enforce or interpret any of the terms or provisions of this Agreement, the prevailing Party in such suit or action or other proceeding shall be entitled to an award against the other Party for the prevailing Party’s reasonable attorney’s fees and costs incurred both at trial and on any appeal.

12. The provisions here are not intended for the benefit of any third party, but solely for the parties to this Agreement.

13. The undersigned Parties each further expressly warrant and represent to one another as follows:

13.1 They have read this Agreement and have consulted with their respective attorneys concerning its contents and legal consequences and have requested any change in language necessary or desirable to effectuate their intent and expectations so that the rule of construction of contracts construing ambiguities against the drafting party shall be inapplicable;

13.2 They have investigated the facts to the extent that they have deemed necessary in their sole discretion and have assumed any risk of mistake of fact and any facts proven to be other than or different from the facts now known to any of the Parties and therefore intend this Agreement to be binding without regard to any mistake of fact or law relating to the subject matter of this Agreement;

13.3 The Agreement is being executed solely in reliance on their own respective judgment, belief and knowledge of the matters set forth here and on the advice of their respective attorneys following an independent investigation of all relevant matters to the extent they deem necessary and reasonable;

13.4 They have taken all actions and obtained all authorizations, consents and approvals as are conditions precedent to their authority to execute this Agreement and thus warrant that they are fully authorized to bind the Party for which they execute this Agreement; and,

13.5 There has been and will be no assignment or other transfer of any claim released here, or any part thereof, and each Party agrees to defend, indemnify and hold harmless the other party from any claims, obligations, or other liabilities, including specifically attorney’s fees and costs incurred, which result from the assertion by any third party of a right to any claim which is released by this Agreement.

14. The foregoing warranties and representations shall survive the execution and delivery of this Agreement.

15. The Parties hereby incorporate the Recitals set forth above as an integral part of this Agreement and acknowledge the truth and accuracy of those Recitals.

16. This Agreement is the entire, final, and complete agreement of the Parties relating to the subject of this Agreement, and supersedes and replaces all prior or existing written and oral agreements between the Parties or their representatives relating thereto. No amendment or modification of this Agreement shall be effective unless in a writing executed by all Parties whose interests are affected by the modification.

17. If any provision of this Agreement is held to be invalid or unenforceable, all remaining provisions will continue in full force and effect.

18. This Agreement may be executed in multiple counterparts, all of which shall be deemed originals, and with the same effect as if all Parties had signed the same document. All of such counterparts shall be construed together with and shall constitute one Agreement, but in making proof, it shall only be necessary to produce one such counterpart. A facsimile transmission shall be as valid and enforceable as an original.

The Parties, by their signatures below, have executed this Agreement and agree to be bound by it.

Approved as to form.