Written by attorneys · grounded in primary & secondary sources — see below
A contract by which parties to a dispute agree to resolve their claims without further litigation, typically in exchange for payment or other consideration. The agreement binds the parties to forgo additional claims arising from the underlying controversy once performed.
Sources & Authorities
How it applies
Common Examples
6
Contingent Fee Settlement Disclosure
Sylvia Santos retained counsel on a contingent fee basis to pursue a personal injury claim against a trucking company. After discovery, the parties reached a $400,000 settlement. Counsel prepared the required writing that disclosed the percentage fee, expense deduction method, and client liability for costs regardless of outcome before remitting the net recovery to Santos.
Divorce Property Settlement and Will
Serena Soto and her husband held their home as tenants by the entirety while divorce proceedings and a property settlement were pending. Soto executed a will devising her interest in the home to her sister. Upon Soto's death while still married, title passed by operation of law to the surviving spouse rather than under the will.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
LLC Derivative Settlement Proceeds
Samuel Soto, a minority member of Solstice Ventures LLC, filed a derivative action alleging mismanagement by the managing member. The parties reached a $250,000 settlement. The court ordered the entire recovery paid directly to the LLC rather than to Soto personally.
Marital Separation Agreement
Sabrina Shah and her spouse executed a written separation agreement that divided their marital home, assigned maintenance payments, and set a parenting schedule for their two children. The court incorporated the agreement's property and support terms into the dissolution decree without modification.
Estate Claim Settlement and Closing
Sydney Santos, personal representative of her aunt's estate, negotiated payment of three creditor claims and a tax assessment. After six months she filed the closing statement confirming all presented claims had been settled or paid and assets distributed, thereby terminating her appointment one year later.
Limited Partnership Derivative Recovery
Sofia Stern, a limited partner in Sierra Solutions LP, brought a derivative action for breach of fiduciary duty by the general partner. The suit settled for $180,000. The court directed the entire amount to the partnership rather than to Stern individually.
Common questions
Frequently Asked
4
What must a contingent fee agreement disclose regarding settlement?+
The agreement must state in writing the percentage fee that accrues upon settlement, how litigation expenses are deducted, and whether the client remains liable for expenses if no recovery occurs.
Does a pending divorce property settlement prevent survivorship rights in jointly held property?+
No. Title to property held as tenants by the entirety passes by operation of law to the surviving spouse even if divorce proceedings and a property settlement are underway, unless the tenancy has been severed.
Who receives the proceeds when a derivative action settles?+
Any proceeds or benefits from a settlement in a derivative action belong to the limited liability company or limited partnership, not the individual plaintiff.
What subjects may a marital separation agreement address?+
A written separation agreement may provide for disposition of property, spousal maintenance, and child support, custody, and visitation.
397 U.S. 358, 90 S. Ct. 1068, 25 L. Ed. 2d 368 (1970)Criminal Procedure
…and which are shown not to have been unsuited to their civil and political condition by having been acted on by them after the settlement of this country." Id., at 276-277.[^maj-22] Later in Twining v. New Jersey , 211 U. S. 78 (1908), Mr. Justice Moody, again speaking for the Court, reaffirmed that "due process of law"…