MEDICAL MALPRACTICE SETTLEMENT AGREEMENT AND MUTUAL RELEASE
[// GUIDANCE: Replace bracketed placeholders and tailor optional clauses before execution.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
1.1 Title; Parties
This Medical Malpractice Settlement Agreement and Mutual Release (the "Agreement") is entered into as of [EFFECTIVE DATE] (the "Effective Date") by and between:
a. [CLAIMANT FULL LEGAL NAME], an individual residing at [ADDRESS] ("Claimant"); and
b. [HEALTHCARE PROVIDER FULL LEGAL NAME], a [LEGAL ENTITY TYPE] organized under the laws of Arkansas with its principal place of business at [ADDRESS] ("Provider").
Claimant and Provider are each a "Party" and, collectively, the "Parties."
1.2 Recitals
A. Claimant alleges that Provider's medical services rendered on or about [DATE(S)] caused personal injuries (the "Claim").
B. The Claim is or may be the subject of an action styled [CASE CAPTION], pending in the Circuit Court of [COUNTY] County, Arkansas (the "Action").
C. The Parties wish to fully and finally resolve the Claim, any and all Released Claims (defined below), and the Action without admission of liability, in accordance with Arkansas law, including but not limited to the Arkansas Civil Justice Reform Act and Ark. Code Ann. Section 16-114-201 et seq.
In consideration of the mutual promises herein, the adequacy of which is acknowledged, the Parties agree as follows:
2. DEFINITIONS
The following terms, when capitalized, have the meanings set forth below and apply equally to singular and plural forms.
"Action" has the meaning set forth in Recital B.
"Agreement" means this Medical Malpractice Settlement Agreement and Mutual Release.
"Arkansas Medical Malpractice Law" means Ark. Code Ann. Section 16-114-201 et seq. and related provisions governing medical malpractice claims in Arkansas.
"Arbitration Option" has the meaning set forth in Section 8.3.
"Business Day" means any day other than a Saturday, Sunday, or Arkansas state holiday.
"Claim" has the meaning set forth in Recital A.
"Claimant" has the meaning set forth in Section 1.1(a).
"Confidential Information" has the meaning set forth in Section 5.2.
"Court" means the Circuit Court of [COUNTY] County, Arkansas (or such other state court as may have jurisdiction over the Action).
"Defendant" and "Provider" are used interchangeably.
"Effective Date" has the meaning set forth in Section 1.1.
"Released Claims" has the meaning set forth in Section 7.2.
"Released Parties" has the meaning set forth in Section 7.2.
"Settlement Amount" means the total monetary consideration to be paid pursuant to Section 3.1.
"Settlement Payment Date" means the date on which any lump-sum Settlement Amount (or first periodic installment) is required to be delivered under Section 3.1.
"Structured Settlement" has the meaning set forth in Section 3.2.
"Survival Period" has the meaning set forth in Section 4.4.
[// GUIDANCE: Add additional definitions as necessary; maintain alphabetical order.]
3. OPERATIVE PROVISIONS
3.1 Payment of Settlement Amount
(a) Provider shall pay (or cause to be paid) to Claimant the total Settlement Amount of $[SETTLEMENT_AMOUNT] on or before the Settlement Payment Date of [DATE] by [WIRE TRANSFER / CASHIER'S CHECK] payable to [PAYEE INFORMATION].
(b) The Settlement Amount fully encompasses:
i. Economic damages;
ii. Non-economic damages;
iii. Attorneys' fees and costs;
iv. Any statutory liens, subrogation, or reimbursement claims (e.g., Medicare, Medicaid, ERISA).
[// GUIDANCE: Verify lien resolution obligations. Arkansas does not have a statutory cap on non-economic damages in medical malpractice cases following constitutional challenges; verify current law.]
3.2 Structured Settlement (Optional)
If the Parties elect a Structured Settlement:
(a) Election. Claimant elects to receive periodic payments. Provider (or its insurer) shall purchase a qualified assignment and annuity contract from a licensed annuity provider rated not less than A- by A.M. Best.
(b) Periodic Payment Schedule. Payments shall be made as follows:
- $[AMOUNT] annually, beginning [DATE], for [TERM] years; and
- One balloon payment of $[AMOUNT] on [DATE].
(c) Present Value. The actuarially-determined present value of the Periodic Payment Schedule equals the Settlement Amount.
(d) Security. The annuity issuer and assignee shall be jointly and severally liable for all periodic payments; no acceleration or commutation shall be permitted absent mutual written consent.
[// GUIDANCE: Delete Section 3.2 in its entirety if lump-sum settlement is chosen.]
3.3 Dismissal of Action
Within five (5) Court Days after Provider's full delivery of the Settlement Amount (or proof of funded Structured Settlement), Claimant shall file a Motion for Dismissal with prejudice of the Action and any related proceedings, each Party to bear its own fees and costs except as otherwise provided herein.
3.4 Conditions Precedent
Provider's obligation to pay the Settlement Amount is conditioned upon:
a. Execution of this Agreement by all Parties;
b. Delivery of an executed IRS Form W-9 by Claimant's counsel;
c. Receipt of executed dismissal documents in escrow with [ESCROW AGENT] pending funding.
4. REPRESENTATIONS & WARRANTIES
4.1 Mutual Authority
Each Party represents that it has full power and authority to enter into and perform this Agreement and that no further consent or approval is required.
4.2 No Assignment of Claims
Claimant represents that no part of the Claim or any Released Claim has been assigned, pledged, or otherwise conveyed to any third party.
4.3 Liens & Reimbursement Obligations
Claimant represents that all known liens (governmental or private) are listed on Schedule 4.3 annexed hereto and will be satisfied from the Settlement Amount.
4.4 Survival
The representations and warranties in Sections 4.1-4.3 shall survive the Effective Date for a period of eighteen (18) months (the "Survival Period").
5. COVENANTS & RESTRICTIONS
5.1 Compliance with Reporting Statutes
Provider shall satisfy all reporting obligations under Arkansas law and the National Practitioner Data Bank within the required time period.
5.2 Confidentiality
Except as required by law, the Parties shall keep the terms and existence of this Agreement confidential. Permitted disclosures include: tax advisors, insurers, immediate family, and the Court in the Action.
5.3 Non-Disparagement
Each Party agrees not to make any statement intended to defame or disparage the other Party concerning the Claim or the Action.
5.4 Notice & Cure
A Party alleging breach shall provide written notice specifying the nature of the breach and a ten (10) Business Day cure period before exercising any remedy under Section 6.
6. DEFAULT & REMEDIES
6.1 Events of Default
a. Provider fails to deliver any payment when due;
b. Claimant fails to file the dismissal within the timeframe in Section 3.3;
c. Either Party breaches the confidentiality obligation in Section 5.2.
6.2 Remedies
a. Provider Default. Upon Provider's uncured default, Claimant may file a stipulated judgment in the Court for the unpaid Settlement Amount plus interest at the Arkansas legal rate per annum, attorneys' fees, and costs.
b. Claimant Default. Upon Claimant's uncured default, Provider may seek dismissal with prejudice and recover reasonable attorneys' fees incurred to enforce this Agreement.
6.3 Attorneys' Fees
The prevailing Party in any action to enforce this Agreement is entitled to recover its reasonable attorneys' fees and costs.
7. RISK ALLOCATION
7.1 Limitation of Liability
Provider's aggregate liability arising from or related to the Claim shall not exceed the Settlement Amount.
7.2 Mutual Release
(a) Released Claims. "Released Claims" means any and all past, present, or future claims, demands, causes of action, damages, or liabilities of every kind, whether known or unknown, suspected or unsuspected, arising out of or related to the Claim, the medical care at issue, or the Action.
(b) Released Parties. "Released Parties" include the Parties and their respective parents, subsidiaries, affiliates, insurers, reinsurers, officers, directors, agents, employees, successors, and assigns.
(c) Release. Each Party fully and forever releases the other Party and all Released Parties from the Released Claims.
(d) Unknown Claims Waiver. Each Party expressly waives any rights under any statute or common law principle that would otherwise limit a release to claims that are known or suspected to exist at the time of execution, including any right to claim mistake or ignorance of material facts.
7.3 No Indemnification
The Parties acknowledge that this Agreement provides for mutual releases and no separate indemnification obligations survive the Effective Date.
7.4 Force Majeure
No Party shall be liable for delays or failures in performance due to events beyond its reasonable control (e.g., natural disasters, acts of war, governmental actions), provided the affected Party gives prompt notice and resumes performance as soon as practicable.
8. DISPUTE RESOLUTION
8.1 Governing Law
This Agreement is governed by, and construed in accordance with, the laws of the State of Arkansas without regard to conflict-of-law principles.
8.2 Forum Selection
Any civil action arising under this Agreement shall be brought exclusively in the Circuit Court of [COUNTY] County, Arkansas. Each Party irrevocably submits to the jurisdiction of such court.
8.3 Arbitration (Optional)
[Option A - Include]
At the election of either Party by written notice delivered within ten (10) Business Days of the Effective Date, all disputes arising from this Agreement shall be submitted to binding arbitration before a single arbitrator under AAA Healthcare Arbitration Rules. Judgment on the award may be entered in any court of competent jurisdiction.
[// GUIDANCE: If the Parties do not want arbitration, delete Option A and renumber.]
8.4 Jury Trial Waiver (Optional)
The Parties knowingly waive the right to jury trial in any proceeding arising out of this Agreement.
[// GUIDANCE: Jury waivers must be knowing and voluntary to be enforceable in Arkansas; ensure compliance before including.]
9. GENERAL PROVISIONS
9.1 Amendments; Waivers
No amendment or waiver is effective unless in writing and signed by both Parties. A waiver on one occasion is not a waiver of any subsequent breach.
9.2 Assignment
No Party may assign its rights or delegate its obligations under this Agreement without prior written consent of the other Party, except that Provider may assign to its insurer for payment purposes.
9.3 Successors & Assigns
This Agreement binds and benefits the Parties and their respective successors and permitted assigns.
9.4 Severability
If any provision is held invalid or unenforceable, that provision shall be narrowly construed, and the remaining provisions remain in effect.
9.5 Entire Agreement
This Agreement constitutes the entire understanding between the Parties regarding the subject matter and supersedes all prior negotiations or agreements, written or oral.
9.6 Counterparts; Electronic Signatures
This Agreement may be executed in counterparts, each of which is deemed an original, and all of which constitute one instrument. Electronic signatures (including DocuSign or PDF) are deemed original signatures.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
CLAIMANT
____________________________________
[CLAIMANT NAME]
Date: _______________________________
PROVIDER
____________________________________
[AUTHORIZED SIGNATORY NAME]
Title: ______________________________
[HEALTHCARE PROVIDER LEGAL NAME]
Date: _______________________________
[Optional Notary Acknowledgment]
[// GUIDANCE: Consider notarization to bolster enforceability.]
[// GUIDANCE: Attach any necessary schedules - e.g., Schedule 4.3 (Liens), Periodic Payment Schedule, or IRS Form W-9 - as separate exhibits.]