Settlement Agreement Release of All Claims for Product Liability


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									This is an agreement between two parties that are currently involved in a products
liability lawsuit or dispute for the settlement of all claims. This agreement sets forth the
terms between two parties for the payment of monetary compensation to one party in
exchange for the forbearance of all products liability claims against the other party. This
agreement should be used by individuals or entities that are currently involved in a
products liability lawsuit or dispute but want to settle their claims outside the courtroom.
                               PRODUCTS LIABILITY

This Settlement and Release Agreement (“Agreement”) is made and entered into as of this ____
Day of _____, 20__, [Instruction: Insert date.] by and between _____ [Instruction: Insert first
party’s name. For clarity, said party is referred to herein as Party 1, however, it is
recommended this is revised to reflect a more applicable name.] (“Party 1”) and _____
[Instruction: Insert second party’s name. For clarity, said party is referred to herein as
Party 2, however, it is recommended this is revised to reflect a more applicable name.]
(“Party 2”).

WHEREAS, Party 1 has instituted an action in _____ [Instruction: Insert court name.] against
Party2, captioned _____ [Instruction: Insert court filing information.] (“the Lawsuit”)
asserting various claims against Party 2, including but not limited to, allegations that Party 1 was
injured as a result of _____, [Instruction: Insert basis for product liability claim, including
product name and how Party 1 came to use same.] which Party 1 claims Party 2 designed,
developed, manufactured, labeled, advertised, marketed, distributed and/or sold [Comment: If
these claims are not made in the Lawsuit, please revise to more accurately reflect the claims
in Lawsuit.];

WHEREAS, the Lawsuit involves disputed questions of law and fact. Notwithstanding that such
disputed questions of law and fact remain subject to ongoing discovery, Party 1 and Party 2 now
wish to fully and finally avoid further costs of litigation and to compromise and settle any and all
claims, controversies and disputes between them, including all past, present and potential claims
based on, derived from, or related to the ______ [Instruction: Insert description of Party 1’s use
of product at issue.] by Party 1, and all claims based on, derived from or related to Party 1’s
alleged injuries and/or damages of whatever kind.

Optional Language: If Party 1 filed the Lawsuit in a representative capacity on behalf of
another person or entity, including but not limited to a minor, decedent or incompetent
individual, Party 1 represents and warrants that Party 1 has the sole right and exclusive
legal authority to enter into this Agreement on behalf of that person or entity and has
obtained any and all necessary applicable legal approvals for this Agreement to be legally
valid and binding upon Party 1 and the person or entity that Party 1 purports to represent.

NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:


1. Recitals. The foregoing Recitals are incorporated into and constitute a part of this

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2. No Admission of Liability. This Agreement is entered into as an expedient and cost-effective
   alternative to costly litigation. The parties make no admission of liability, express or
   implied, by entering into this Agreement, and any such liability, express or implied, is hereby
   specifically denied.

3. Party 2’s Payment to Party 1. Party 2, in exchange for the releases set forth below and in
   exchange for Party 1 not seeking compensation from any insurer of Party 2, and for other
   good and valuable consideration, the receipt and sufficiency of which are hereby
   acknowledged, agrees to pay Party 1 the total amount of _____ [Instruction: Insert amount
   to be paid.] payable within 21 days from the execution of this Agreement by the Parties
   [Instruction: If payment arrangements vary from that set forth herein, revise this
   language to reflect the parties’ agreement.]. The parties agree that should ___
   [Instruction: Insert party to make payment.] fail to make any of the required payments
   pursuant to the schedule described in this Agreement, immediately upon the failure to make
   the payment, the entire settlement amount (less any amounts that have been previously paid)
   shall become immediately due and payable and the parties stipulate that judgment in that
   amount shall be entered against ____ [Instruction: Insert party name.] on behalf of ____
   [Instruction: Insert party name.]. The parties agree that jurisdiction for this stipulated
   judgment shall be proper in _____ [Instruction: Insert state.].

4. Releases. For and in consideration of the foregoing and other good and valuable
   consideration, the receipt and sufficiency of which if hereby acknowledged, and upon the full
   execution of this Agreement, Party 1 on behalf of himself, his agents, heirs, administrators,
   attorneys, successors and assigns, does hereby dismiss, release and hold harmless Party 2, its
   stockholders, officers, directors, employees, agents, insurers, attorneys, predecessors,
   successors and assigns, if any, of and from any and all matters, debts, dues, sums of money,
   covenants, controversies, agreements, promises, trespasses, damages, losses, expenses, costs,
   liabilities, obligations, claims, demands, grievances, suits, causes of action, complaints,
   judgments, decrees, executions of whatever kind, in law or in equity, absolute, contingent,
   likely or unlikely, known or unknown, which have existed from the beginning of time to the
   date of this Agreement, including but not limited to all claims Party 1 asserted or which
   could have been asserted in the Lawsuit and any and all claims arising out of the Lawsuit.

    The parties understand the word “claims” to include all actions, claims, and grievances,
    whether actual or potential, known or unknown, and specifically but not exclusively all
    claims arising out of the actions described herein. All such claims (including related
    attorneys’ fees and costs) are forever barred by this Agreement and without regard to whether
    those claims are based on any alleged breach of a duty arising in contract or tort; any alleged
    unlawful act, including, without limitation, discrimination and harassment; any other claim or
    cause of action; and regardless of the forum in which it might be brought, except that an
    enforcement claim pursuant to a default or breach of this Agreement shall not be barred, but
    may be brought as specifically set forth herein.

    The release set forth in this Agreement is intended to have the broadest possible application
    and includes, but is not limited to, any tort, contract, common law, constitutional or other

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    statutory claims arising out of any federal, state or local laws. The release set forth herein
    shall apply to the present and future officers, directors, stockholders, attorneys, agents,
    insurers, servants, members, representatives, employees, subsidiaries, subcontractors,
    contractors, affiliates, partners, family members, predecessors, and successors in interest and
    assigns of the parties. Party 1 further acknowledges that discovery is ongoing and that
    different or additional facts may be discovered beyond what Party 1 now knows or believes
    to be true with respect to the matters herein released, and Party 1 agrees that this Agreement
    shall be and shall remain, fully effective, binding and final, notwithstanding any different or
    additional facts which may be discovered.

5. Dismissals. Each party shall file a dismissal with prejudice of the actions specifically set
   forth herein and a dismissal with prejudice of any action pending in arbitration, if any, as to
   all claims, causes of action, and parties.

6. Transfer and Assignment. Each party hereto warrants to the other that it has not assigned,
   transferred nor purported to assign or transfer any claim or rights thereto against the other
   party hereto that arose prior to the execution of this Agreement and that it will not assign or
   transfer or purport to assign or transfer hereafter any such claim or rights thereto.

7. Party 2 acknowledges that Party 2 alone is responsible for reimbursement of Party 1, and to
   satisfy any and all other claims or liens to the extent they apply to the consideration to be
   paid pursuant to his Agreement.

8. Optional Language: Confidentiality. The parties agree they will keep the fact, terms,
   negotiation, and amount of this Agreement completely confidential and that they will
   not disclose any information concerning this Agreement to anyone, provided either
   party may make such disclosures as are required by law and as are necessary for
   legitimate enforcement or tax compliance purposes. Party 1 and Party 2 further agree
   that each, and their respective attorneys, will not make any statement, either directly or
   indirectly, by implication or innuendo, to anyone, including but not limited to
   consultants, experts, the press or media, concerning the amount or other terms of this
   Agreement, or the nature and substance of any negotiations with respect to this
   Agreement, or describing or characterizing the settlement in any way. The parties
   further agree they will not either directly or indirectly, publicize the fact of the
   settlement and that any inquiry into the settlement, its amount, meaning, interpretation
   or comparative value, or the negotiations leading to the settlement by anyone, including
   but not limited to the press or media, will be met only by a joint statement of the parties
   that the case has been mutually resolved. The attorneys of the respective parties will
   decline any requests for press or media interviews with respect to the settlement, its
   history or terms, and further, will not maintain and instead will discontinue any website
   references to the discontinuation or withdrawal of the product, if any, and will further
   refrain from any future postings regarding same. The attorneys shall not be required
   to make any attempts to delete any historical website references or searches with
   respect to same.

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    Notwithstanding the foregoing, each of the parties may discuss the fact, terms,
    negotiation and amount of this Agreement with their respective attorneys, accountants
    and to the extent necessary to enter into this Agreement, employees and/or directors
    and/or officers, subject to any such additional persons being subject to this
    confidentiality clause.

    Each of the parties hereby acknowledges and agrees that these confidentiality
    provisions are essential elements of this Agreement and that any breach of them shall
    constitute a material breach of the Agreement entitling Party 2 to an immediate remedy
    against the party or attorney breaching these provisions, including injunctive relief and
    reasonable attorneys’ fees. If Party 1 is the sole party responsible for any such breach
    and Party 1 has discontinued its attorney-client relationship with its respective
    attorney, Party 2’s sole recovery right and remedy shall be against the offending
    person. Further, any filings required to obtain court approval of this Agreement shall
    be made under seal to protect confidentiality of the settlement unless same are
    prohibited by applicable law.

9. Costs and Expenses. The parties shall be responsible for their respective attorneys’ fees and
   costs and expenses incurred in this matter.

10. Controlling Law. This Agreement shall be governed by, and construed and enforced in
    accordance with, the laws of the State of _____ [Instruction: Insert state.]. The parties
    hereby irrevocably consent to personal jurisdiction and venue in the _____ [Instruction:
    Insert court.] for any and all Claims arising out of this Agreement or enforcement of this
    Agreement over which that court has subject matter jurisdiction.

11. Amendments. This Agreement cannot be altered or otherwise amended except by written
    instrument signed by all of the parties hereto.

12. Entire Agreement. The parties acknowledge and agree that this Agreement constitutes the
    full, complete, and entire agreement or the parties and that there are no other representations,
    covenants, warranties, or other agreements binding of the parties that are not expressly set
    forth herein.

13. Rule of Construction. The parties acknowledge and agree that they have each had the
    opportunity to have this Agreement reviewed by counsel of their choosing. Therefore, the
    normal rule that ambiguities are construed against the drafter shall not apply in connection
    with the interpretation and construction of this Agreement.

14. Validity of Agreement. The parties represent and agree that the person executing this
    Agreement on behalf of each party has the full and complete permission and authority of the
    respective entity for which he is executing this Agreement, and have the full right and
    authority to commit and fully bind themselves, their representatives, agents, principals,
    predecessors, successors, and privies according to the provisions hereof. This Agreement is a
    legally valid, binding and enforceable obligation of the parties in accordance with its terms.

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15. Counterpart Signatures. This Agreement may be executed in one or more counterparts,
    including by facsimile, each of which shall be deemed an original and all of which together
    shall constitute one and the same instrument.

16. Voluntary Signature. This Settlement Agreement is executed voluntarily and without any
    duress or undue influence on the part or behalf of the Parties hereto, with the full intent of
    releasing all claims. The Parties acknowledge that: (a) They have read this Settlement
    Agreement; (b) They have been represented in the preparation, negotiation, and execution of
    this Settlement Agreement by legal counsel of their own choice or that they have voluntarily
    declined to seek such counsel; (c) They understand the terms and consequences of this
    Settlement Agreement and of the releases it contains; (d) They are fully aware of the legal
    and binding effect of this Settlement Agreement.

WITNESS our hands and seals as of the date set forth below.

As of this ___ day of ____, 20__ [Instruction: Insert date.]

Insert Party 1 Signature Block

Insert Party 2 Signature Block

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