When a person has been financially injured as the result of another person or party’s actions, then they are legally allowed to initiate a civil lawsuit against that person, demanding payment for the damages that they suffered.
Civil litigation is the process by which civil lawsuits are handled and include the entire time period from when a civil lawsuit is initially filed to the time period after which the civil lawsuit is either settled or tried in a court of law.
The civil litigation process can often be very expensive, lengthy, and exhausting to all of the parties involved. Because of how expensive it can be to take a civil lawsuit to trial, most civil lawsuits often end in a settlement.
A settlement is an agreement between the person that was allegedly harmed, known as the plaintiff, and the person that allegedly harmed the plaintiff, commonly referred to as the defendant. In a settlement agreement, the plaintiff will agree to no longer pursue their civil lawsuit against the defendant in exchange for payment of certain damages or a cessation of action by the defendant.
It is important to note that settlement agreements may occur before, during, or even after a civil trial has occurred. It is also important to note that most settlement agreements must be made in writing in order to ensure that both parties are legally bound to the agreement.
Further, settlement agreements may be utilized in various matters, such as personal injury lawsuits, family law matters, such as a divorce settlement agreement or marital settlement agreement, or even in employment contexts.
It is important to note that Florida law requires that settlement agreements must be in writing to be enforceable, which stems from the Statute of Frauds. For any non judicial settlement agreements (“NJSAs”), the Florida Trust Code Section 736.0111 applies and requires that:
- All interested parties in a settlement agreement must agree to the terms
- The agreement must be made in writing
- The terms of the agreement cannot violate a material purpose of the agreement
- All parties must have the legal capacity to contract
Generally speaking, Florida contract law treats settlement agreements as binding contracts that require three elements to be enforceable:
- An offer
- Acceptance of the offer
- Consideration, which is often monetary in nature
In most situations, settlements will occur either prior to a lawsuit even being initiated or prior to a case going to trial. This is because one of the main motivators for all parties to a civil lawsuit to settle the case is to avoid the costs of discovery, litigation, and going to trial.
What Is the Purpose of a Settlement Agreement?
As noted above, one of the main reasons to reach a settlement agreement is to prevent further money and time being spent on discovery, litigation, and going to court. Examples of other purposes of settlement agreements in Florida:
- Alternative to Litigation: Settlement agreements often provide a quicker and more cost effective alternative to full court litigation by helping parties avoid the uncertainty, expense, and time involved in going to trial
- Dispute Resolution: Settlement agreements serve as legally binding contracts that resolve all of the conflicts and issues between parties across various types of cases, including:
- Family law matters
- Personal injury cases
- Business or sales disputes
- Trust and estate issues
- Employment disputes
- Legal Clarity and Finality: Settlement agreements provide clear documentation of each party’s rights and obligations, payment terms and schedules, and the specific actions required by each party moving forward
- Judicial Economy: From a legal system perspective, settlements help reduce the court’s backlogs and conserve judicial resources by resolving cases outside the courtroom
- Because of this, many courts often mandate both parties attempt settlement negotiations occur prior to a final hearing in a case
- Risk Management: Settlement agreements allow parties to control the outcome of their dispute rather than leaving it to the uncertainty of a judge or jury
- In other words, all parties can compromise to reach a mutually acceptable resolution rather than risk an unfavorable court ruling that favors one party or even disfavors all parties involved
- Future Protection: When they are properly drafted, settlement agreements can prevent future disputes by clearly outlining the terms of the agreement, each party’s responsibilities moving forward, and consequences of non-compliance with the settlement agreement
What Should Be Included in a Settlement Agreement?
As mentioned above, a binding settlement agreement in Florida must incorporate several critical components to be legally enforceable. First, the agreement needs all the basic contract elements, which includes:
- Clear identification of all parties
- Specific terms of offer and acceptance
- Valid consideration
- Evidence that all parties understand and agree to the terms, which is commonly represented by the parties signatures
Any settlement agreement should outline detailed terms and conditions, including specific payment amounts, schedules, release of claims, required actions from each party moving forward, and deadlines for the actions. The document should also clearly state the consequences for any breach of the agreement.
Florida law requires the agreement to be in writing with signatures from all parties. It is important to note that recent case law has established that email exchanges between attorneys can be binding if there’s clear client authority. However, the document must explicitly state that it’s a binding and enforceable agreement.
The language throughout the agreement must be unambiguous, with specific definitions of key terms and complete descriptions of all rights being settled. Further, there should be no open items requiring future negotiation, as these can render the agreement unenforceable.
Finally, the agreement should detail all of the closing elements, such as the effective date of the settlement, payment methods, implementation procedures, and any processes for modifications if allowed. Once again, any essential terms left open for future negotiation can compromise the agreement’s enforceability. As such, it is important to address all material terms in the agreement.
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How Can You Prepare for a Successful Settlement Agreement?
Successful settlement negotiations require strategic preparation to maximize recovery for damages sustained through another party’s actions or inactions. The following list is a recommended approach to preparing for a settlement negotiation:
- Discovery Phase Mastery: The discovery process is crucial in preparing for a successful settlement agreement, as it is the phase where parties exchange crucial documentation and respond to interrogatories under oath
- A thorough discovery process will help you build a strong foundation for settlement negotiations by securing essential evidence to support your claim
- Legal Framework: It is also important to understand Florida law, specifically applicable statutes, such as knowledge of Florida’s marriage laws, case precedents, and civil procedures involved in your case
- Damage Documentation: Florida law recognizes various types of damages, and proper documentation is crucial of the damages that you suffered is necessary for a successful settlement agreement
- Strategic Preparation: Successful negotiations in Florida require anticipating opposing counsel’s strategies and preparing effective counters, such as by being prepared to address any potential contributory negligence arguments, having documentation ready to counter liability disputes, and understanding local settlement trends and jury verdicts in cases similar to yours
What Are the Requirements for a Settlement Agreement in Florida?
As mentioned above, Florida law requires any settlement agreement to be made in writing with signatures from all parties. Further, all basic contract formation requirements must be met, including that all parties be clearly identified, there are specific terms of offer and acceptance, there is valid consideration, and that all parties agree and understand the terms of agreement.
How Do I Enforce a Settlement Agreement in Florida?
In order to enforce a settlement agreement in Florida, you must file a motion to enforce settlement with the court that had original jurisdiction over your case. Next, you will need to prove that the settlement agreement was valid, the terms of the agreement were definite and clear, and that the party you are seeking to enforce the agreement against signed it.
Then, if the other party has breached the settlement agreement, the court can then issue an order compelling their compliance. For instance, if there is a refusal to sign a settlement agreement, the court may order that the agreement is valid based on circumstantial evidence.
In some cases, the court may also award your attorney’s fees for the enforcement action. It is important to note that the court’s authority to enforce the settlement will depend on how the original case was disposed of and whether jurisdiction was specifically retained by the court.
Are Settlement Agreements Confidential in Florida?
In Florida, settlement agreements are not automatically confidential by law. However, the parties involved in a settlement agreement can include confidentiality provisions in their agreements. Florida courts will generally uphold confidentiality agreements unless they conflict with public policy.
It is important to note that Florida Statute 90.408 dictates that evidence of settlement negotiations is inadmissible in order to prove liability. However, that statute doesn’t automatically make settlements confidential. There is one exception for settlements involving public agencies or government entities, as such settlements generally cannot be kept confidential due to Florida’s public records laws.
Do I Need a Settlement Agreement Lawyer?
If you have been damaged by the actions or inactions of a third party, if you have been civilly sued by another party, or if you are involved in another civil action which may benefit from effective settlement negotiations, it is recommended to consult with a Florida lawyer.
LegalMatch can assist you in setting up an attorney consultation with an attorney experienced in the form of law that applies to your issue. For instance, in the case of a family law matter where there are issues surrounding children or marital property, a family law attorney in Florida is essential in helping you resolve your issues in your best interests.
A family lawyer will be able to help you negotiate with the other party or their attorney, and help you understand your legal rights under both state and federal laws. They can also ensure that you gather all of the evidence necessary in the discovery phase to engage in effective settlement negotiations. Finally, if a settlement is not possible, they can also represent you in front of the judge or jury.
