Settlement agreement and release: civil litigation (with drafting notes)

by Peter Morton, K & L Gates

A standard document for a settlement agreement and release, designed for use in England and Wales to achieve a full and final settlement of a dispute. This standard document could be adapted for use in disputes where court proceedings have been initiated and for those where they have not. It provides for payment arrangements, including options for a single lump sum or payment by instalments, with provisions for interest on late payments. It also addresses how to manage ongoing litigation, offering options to either stay the proceedings, potentially through a Tomlin order, or dismiss the action entirely. The agreement contains a broad release of claims, an agreement not to sue, and clauses covering costs, warranties of authority, and indemnities. This standard document explores critical drafting considerations, such as the implications of the Consumer Credit Act 1974 for instalment plans, the scope of release clauses for known and unknown claims, entire agreement provisions, and confidentiality obligations, including guidance from the Solicitors Regulation Authority (SRA) on non-disclosure agreements.