A recent LinkedIn conversation about settlement terms raised an important issue. The topic — A defendant adds additional (and unacceptable) terms to a release document.
The issue is far too common. Here’s the scenario. The lawyers agree to settle an injury claim. Maybe the lawyers reached a settlement informally and confirmed it with letters or emails. Maybe the lawyers reached a settlement through mediation. Where that occurs, the mediator typically has the parties sign a short settlement memorandum with the basic terms. In both situations, the defendant paying money to a plaintiff will typically require a “general release” of the claims. And, the defense attorneys will prepare or provide this release when the settlement is paid. That’s fine. An injured plaintiff receiving compensation will certainly release or give up his/her claims upon payment.