MEDICAL MALPRACTICE SETTLEMENT AGREEMENT
(Florida – Court-Ready Template)
[// GUIDANCE: This template is drafted for use in resolving medical malpractice claims governed by Florida law. Customize all bracketed terms and confirm consistency with the specific facts, insurance policy language, and court orders applicable to your matter.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
3.1 Settlement Payment & Structured Settlement Option
3.2 Conditions Precedent
3.3 Tax Treatment - Representations & Warranties
- Covenants & Ongoing Obligations
- Default & Remedies
- Risk Allocation
7.1 Mutual Release & Indemnification
7.2 Limitation of Liability
7.3 Insurance - Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
This Medical Malpractice Settlement Agreement (this “Agreement”) is entered into and made effective as of [Effective Date] (the “Effective Date”) by and between:
a. [Claimant Full Name], an individual residing at [Address] (“Claimant”); and
b. [Health Care Provider Legal Name], a [Entity Type] organized under the laws of Florida with its principal place of business at [Address] (“Provider”).
Claimant and Provider are each referred to herein individually as a “Party” and collectively as the “Parties.”
RECITALS
A. Claimant has asserted or intends to assert claims against Provider arising from alleged medical malpractice occurring on or about [Date of Alleged Incident] (the “Incident”).
B. Provider expressly denies any liability but desires to resolve all disputes without admission of fault.
C. The Parties wish to settle all Claims (as defined below) in accordance with Florida law, including the damage-cap provisions of Fla. Stat. § 766.118, structured settlement rules, and all mandatory reporting requirements.
NOW, THEREFORE, in consideration of the mutual covenants, releases, and payments set forth herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
2. DEFINITIONS
For purposes of this Agreement, capitalized terms have the meanings set forth below. Defined terms appear alphabetically; cross-references in parentheses identify principal usage.
“Affiliate” means, with respect to a Party, any entity controlling, controlled by, or under common control with such Party.
“Arbitration Election Notice” (Section 8.3) means written notice by a Party electing to submit a Dispute to arbitration.
“Claims” means any and all past, present, or future causes of action, suits, debts, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, claims, and demands whatsoever, at law or in equity, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, arising out of or relating to the Incident.
“Confidential Information” (Section 5.2) means the existence, terms, and underlying facts of this Agreement and any Protected Health Information (“PHI”) under the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”).
“Dispute” (Section 8) means any controversy arising out of or relating to this Agreement, its breach, or its interpretation.
“Final Settlement Amount” (Section 3.1) means the total monetary consideration to be paid to Claimant, inclusive of all damages, costs, interest, and attorneys’ fees, subject to statutory caps.
“Florida Damage Cap” (Section 3.1.3) means the limitation on non-economic damages imposed by Fla. Stat. § 766.118, as amended or as interpreted by applicable Florida appellate authority.
“NPDB” (Section 5.4) means the National Practitioner Data Bank established under 42 U.S.C. § 11131.
3. OPERATIVE PROVISIONS
3.1 Settlement Payment & Structured Settlement Option
3.1.1 Lump-Sum Payment. Provider shall pay Claimant the Final Settlement Amount of [US$ _____] (the “Settlement Payment”) on or before [Payment Date], by wire transfer pursuant to Claimant’s written instructions.
3.1.2 Optional Structured Settlement. In lieu of subsection 3.1.1, the Parties may elect a periodic payment schedule compliant with Section 130 of the Internal Revenue Code and any applicable Florida structured settlement regulations. Election shall be evidenced by a Structured Settlement Addendum executed simultaneously with this Agreement.
[// GUIDANCE: Insert structured payment schedule and qualified assignment language when electing periodic payments.]
3.1.3 Compliance with Florida Damage Caps. The Final Settlement Amount includes and shall not exceed any applicable limitations on non-economic damages under the Florida Damage Cap. If subsequent judicial action invalidates the cap, the Parties agree that the Final Settlement Amount remains fixed and binding.
3.1.4 Distribution of Settlement Payment. Claimant’s counsel, [Law Firm Name], shall hold the Settlement Payment in trust and distribute amounts due to:
(a) Claimant;
(b) [Medicare/Medicaid/Other Lienholders], pursuant to final lien resolution letters; and
(c) Claimant’s counsel for attorneys’ fees and costs, consistent with Fla. Bar R. 4-1.5.
3.1.5 Default Interest. Any unpaid portion of the Settlement Payment shall accrue interest at [____ %] per annum simple interest from the Payment Date until paid.
3.2 Conditions Precedent
Payment obligations are conditioned upon:
a. Claimant’s execution and delivery of this Agreement, including the Mutual Release (Section 7.1);
b. Receipt of court approval if required for minors, incompetents, or estates; and
c. Delivery of executed lien satisfaction documents reasonably acceptable to Provider.
3.3 Tax Treatment
Each Party shall be solely responsible for its own tax liabilities, if any, arising from the Settlement Payment. No Party makes representations regarding tax consequences. Claimant has been advised to seek independent tax counsel.
4. REPRESENTATIONS & WARRANTIES
4.1 Authority. Each Party warrants it has full authority to execute and perform this Agreement and that no additional consents are required.
4.2 No Assignment of Claims. Claimant represents that no Claims have been assigned or encumbered in whole or in part.
4.3 Independent Counsel. Each Party represents it has consulted with, or had the opportunity to consult with, independent legal counsel regarding this Agreement.
4.4 Survival. The representations and warranties in Sections 4.1–4.3 survive the Effective Date for a period of [two (2) years].
5. COVENANTS & ONGOING OBLIGATIONS
5.1 No Future Claims. Claimant covenants not to commence, prosecute, or cause to be commenced any proceeding based on Claims released herein.
5.2 Confidentiality.
a. Except as required by law, regulation, or court order, the Parties shall maintain Confidential Information in strict confidence.
b. Permitted disclosures include those to counsel, tax advisers, insurers, and as necessary to satisfy reporting obligations (Section 5.4).
c. Breach of confidentiality constitutes a material default (Section 6).
5.3 Non-Disparagement. The Parties shall refrain from making statements reasonably construed to disparage the other Party in relation to the Incident.
5.4 Mandatory Reporting. Provider (or its insurer) shall timely submit all reports required under:
i. Fla. Stat. § 627.912 (professional liability claims reporting); and
ii. 42 U.S.C. § 11131 (NPDB reports).
Claimant agrees to cooperate, at no cost, in providing information reasonably required for such reports.
6. DEFAULT & REMEDIES
6.1 Events of Default.
a. Provider’s failure to timely make the Settlement Payment;
b. Material breach of confidentiality (Section 5.2) or non-disparagement (Section 5.3);
c. A Party’s material misrepresentation under Section 4.
6.2 Notice & Cure. The non-breaching Party shall provide written notice specifying the default. The breaching Party has [10] business days to cure monetary defaults and [20] business days to cure non-monetary defaults.
6.3 Remedies. If default is not cured within the cure period, the non-breaching Party may:
i. Seek enforcement of this Agreement as a settlement pursuant to Fla. R. Civ. P. 1.730;
ii. Obtain judgment for any unpaid Settlement Payment plus default interest; and
iii. Recover reasonable attorneys’ fees and costs incurred in enforcement.
7. RISK ALLOCATION
7.1 Mutual Release & Indemnification
7.1.1 Release by Claimant. Effective upon Provider’s payment of the Settlement Payment, Claimant irrevocably and unconditionally releases Provider and its Affiliates, insurers, employees, and agents from all Claims.
7.1.2 Release by Provider. Effective upon execution, Provider releases Claimant and Claimant’s counsel from any claims arising out of the filing or prosecution of the Action, exclusive of obligations under this Agreement.
7.1.3 Indemnification. Each Party (“Indemnifying Party”) shall indemnify, defend, and hold harmless the other Party from any liability, loss, or expense arising out of a breach of its representations, warranties, or covenants herein.
7.2 Limitation of Liability
Except for obligations to make the Settlement Payment, pay default interest, or for breaches of Sections 5.2 and 5.3, each Party’s aggregate liability under this Agreement shall not exceed the Final Settlement Amount.
7.3 Insurance
Provider represents that the Settlement Payment is funded by its professional liability insurer, [Carrier Name], Policy No. [______], and that coverage limits remain available and unimpaired.
8. DISPUTE RESOLUTION
8.1 Governing Law. This Agreement and any Dispute shall be governed by the laws of the State of Florida without regard to conflict-of-laws principles.
8.2 Forum Selection. The Parties submit to the exclusive jurisdiction of the Circuit Court in and for [______] County, Florida (the “State Court”).
8.3 Optional Arbitration. Either Party may elect binding arbitration by delivering an Arbitration Election Notice within [30] days after a Dispute arises. Arbitration shall be administered by [AAA/JAMS] under its Healthcare Claims Rules, heard in [City], Florida, before a single arbitrator. Judgment on the award may be entered in State Court.
8.4 Jury Trial Waiver. IF, AND ONLY IF, NEITHER PARTY ELECTS ARBITRATION, THE PARTIES [DO/DO NOT] HEREBY WAIVE THE RIGHT TO A JURY TRIAL IN ANY ACTION RELATING TO THIS AGREEMENT.
8.5 Injunctive Relief. The Parties acknowledge that injunctive relief is not contemplated due to the monetary nature of this settlement; however, either Party may seek equitable relief to enforce confidentiality or non-disparagement obligations.
9. GENERAL PROVISIONS
9.1 Amendments & Waivers. No amendment or waiver is effective unless in writing and signed by both Parties. A waiver is effective only for the specific instance and purpose given.
9.2 Assignment. Neither Party may assign or delegate its rights or obligations without the prior written consent of the other Party, except that Provider may assign to its insurer solely for purposes of funding the Settlement Payment.
9.3 Successors & Assigns. This Agreement binds and inures to the benefit of the Parties and their respective successors and permitted assigns.
9.4 Severability. If any provision is held invalid, the remainder of this Agreement shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to achieve its intent.
9.5 Integration. This Agreement constitutes the entire understanding between the Parties concerning the subject matter and supersedes all prior negotiations or agreements, whether written or oral.
9.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original. Signatures transmitted electronically (e.g., via DocuSign or PDF) are deemed original signatures.
9.7 Headings. Section headings are for convenience only and do not affect interpretation.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first written above.
CLAIMANT
[Claimant Full Name]
Date: _______
PROVIDER
[Authorized Signatory Name]
Title: ____
[Health Care Provider Legal Name]
Date: ____
[Seal/Notary Acknowledgment, if required]
[// GUIDANCE:
1. Court Approval – For minor or incapacitated claimants, obtain an order approving the settlement and guardianship reports per Fla. Stat. § 744.387.
2. Medicare Compliance – If Claimant is Medicare beneficiary, consider a Medicare Set-Aside Arrangement and Section 111 reporting.
3. Structured Settlement Funding – Employ a qualified assignment company and annuity issuer rated A- or better by AM Best.
4. Record Retention – Retain executed originals for a minimum of eight (8) years or as otherwise required by Fla. R. Jud. Admin. 2.430.
5. Post-Settlement Reporting – Confirm submission of NPDB and Florida OIR reports within thirty (30) days, and deliver confirmation to Claimant’s counsel.]