What a settlement agreement is
A settlement agreement is a type of legal contract that concludes a dispute and provides evidence of parties agreeing to material terms – essential and inducing elements of the contract – and conditions resulting from negotiations. It is legally binding and primarily used in civil matters, but not exclusively. By agreeing to a settlement, disputes are settled much more swiftly than in a court case, which can be long drawn out. This practice saves clients time and money by avoiding a potentially lengthy trial.
How to enforce a settlement agreement
One of the most common practices to enforce a settlement agreement is to file a motion to enforce settlement agreement in court. This motion calls on the court to enforce the agreed upon terms, and the judge has the final say. His or her role is to analyze evidence presented and listen to oral testimony by both sides. Based on the hearing, the judge may submit a judgment pursuant to or against the agreement.
How to proceed with a breach of settlement agreement
After agreeing to the material terms of a settlement agreement, the parties can add to the contract terms that specify a course of action in the event of a breach of the agreement. In the case of a violation of contract, the breaching party risks being lawfully forced to fulfill the agreement and pay damages to the party aiming to enforce the settlement, including attorney’s fees. Generally, a separate lawsuit must be filed in order to attempt to secure damages from a violation of agreement.
About DelCotto Law Group
DelCotto Law Group is Kentucky’s business preservation law firm known for its commitment to the lifetime success of its clients. DLG serves Kentuckians with complicated financial matters, especially in the areas of bankruptcy and complex litigation. For more information please call (859) 231-5800, email [email protected] or reach us on our contact page.