The famous franchise catcher Larry Peter (“Yogi”) Berra made the observation that “it ain’t over ‘til it’s over.” Yogi may not have been a lawyer, but he knew human nature. He also knew how to get along with people. As he stated about human relationships, “I always go to other people’s funerals, so they will come to mine.”

Now there is a settlement!

Settlements of disputes should be the end of the fight, not a continuation of I by other means. Achieving that result is dependent largely on how the settlement agreement is “papered.” There are numerous potential “slips twixt cup and lip.”

These are the considerations relevant to a successful settlement agreement:

How can you protect your settlement?

  • Confidentiality Clauses
  • Non-Disparagement Clauses
  • Return of Franchise Materials and Transfer of Franchisee
  • Communication Sites
  • De-identification and Prohibition of Use of Marks and Proprietary Information
  • Non-Solicitation and Non-Compete Clauses
  • Binding Principals to the Settlement

How can you secure your settlement?

  • Limited Releases and Covenants Not to Sue    
    • Releases    
      • Essential Principles    
        • Definition   
        • Promise to Discharge on Existing Duty in the Future
        • Release of Future Duty
        • Conditional Release
        • Avoidance and Invalidation of Releases   
        • Electronic Releases
      • Covenants Not to Sue
    • Indemnities
    • Escrows
    • Settlement Liquidated Damages

How can you enforce your settlement?

  • Forum Selection Clauses   
  • Consents to Judgments

It is crucial that your lawyer be experienced in resolving disputes, both before trial or arbitration or even after. Our lawyers at Garcia & Milas are skilled in this area, as in many others.

This publication is for general information purposes only and is not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.

Jaime Paoletti

Jaime Paoletti

Jaime Paoletti is an attorney at Garcia & Milas, P.C. who represents contractors, owners, developers, subcontractors, and design professionals. She routinely drafts and negotiates construction contracts to meet the needs of each project and helps her clients navigate key contractual provisions such as indemnification and insurance.

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