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

by Peter Morton , K & L Gates

A standard document that provides a model deed for the full and final settlement of a commercial dispute between two parties under the law of England and Wales. This standard document can be adapted for use whether or not court proceedings have been initiated and includes options for a stay of proceedings or dismissal of the action by consent order, including a Tomlin order. It sets out key terms including payment obligations, which can be structured as a lump sum or in instalments. This deed includes a broad release clause and an agreement not to sue, designed to discharge all released claims and prevent future litigation concerning the dispute. This standard document also contains clauses covering confidentiality and non-disclosure agreements (NDAs), warranties of authority, indemnities, and costs. It addresses the rights of non-parties, such as related parties, under the Contracts (Rights of Third Parties) Act 1999. The integrated drafting notes provide essential guidance on critical issues, including the circumstances requiring a deed, the scope of the release, potential implications of the Consumer Credit Act 1974 on instalment plans, and compliance with regulatory expectations for confidentiality provisions.