MEDICAL MALPRACTICE SETTLEMENT AGREEMENT

(New York – Comprehensive Template)

[// GUIDANCE: Replace every bracketed, ALL-CAPS placeholder before execution. Delete all guidance boxes after customizing.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Schedules & Exhibits

1. DOCUMENT HEADER

1.1 Title and Parties

This Medical Malpractice Settlement Agreement (the “Agreement”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

a. [PLAINTIFF FULL LEGAL NAME], an individual residing at [ADDRESS] (“Plaintiff”); and

b. [DEFENDANT HEALTH-CARE PROVIDER LEGAL NAME], a [ENTITY TYPE] organized under the laws of New York with its principal place of business at [ADDRESS] (“Defendant”); together with [DEFENDANT’S PROFESSIONAL LIABILITY INSURER], a [STATE]-domiciled insurance company (the “Insurer”), solely as to Sections 3 and 7.

Plaintiff and Defendant are referred to individually as a “Party” and collectively as the “Parties.”

1.2 Recitals

WHEREAS, Plaintiff has asserted medical malpractice claims against Defendant in the matter captioned [CASE TITLE], pending in the [COURT NAME] under Index No. [INDEX NO.] (the “Action”);

WHEREAS, Defendant denies all liability, wrongdoing, and damages alleged in the Action;

WHEREAS, the Parties desire to fully, finally, and forever settle and compromise the Action and all related claims on the terms set forth herein, to avoid the expense and uncertainty of continued litigation;

NOW, THEREFORE, in consideration of the mutual covenants and promises herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.

2. DEFINITIONS

The following terms, when capitalized, have the meanings set forth below. Undefined capitalized terms shall have their plain-language meaning or the meaning ascribed elsewhere in this Agreement.

“Action” – has the meaning set forth in Recital A.
“Agreement” – this Medical Malpractice Settlement Agreement, including all Schedules and Exhibits.
“Confidential Information” – Section 5.2.
“Effective Date” – Section 1.2.
“Future Damages” – damages allocated to post-Effective-Date losses, including future medical expenses, lost earnings, and non-economic damages, as defined under N.Y. C.P.L.R. Article 50-A.
“Installment Obligation” – Section 3.2(b).
“Payment Default” – Section 6.1(a).
“Periodic Payment Schedule” – Exhibit B.
“Releasees” – Section 7.2(a).
“Releasors” – Section 7.2(b).
“Settlement Amount” – Section 3.2.

3. OPERATIVE PROVISIONS

3.1 Dismissal of the Action

Within five (5) business days after receipt of the Initial Lump-Sum Payment (defined below), Plaintiff shall execute and deliver to Defendant a Stipulation of Discontinuance with Prejudice, and Defendant shall file the same with the Court.

3.2 Consideration; Payment Mechanics

a. Settlement Amount. Defendant (or Insurer) shall pay Plaintiff the total gross sum of [US$ ____] (the “Settlement Amount”), allocated as follows:

i. Initial Lump-Sum Payment: [US$ ____] paid within [NUMBER] business days after the Effective Date; and

ii. Future Damages: [US$ ____] payable pursuant to the Periodic Payment Schedule, structured in compliance with N.Y. C.P.L.R. §§ 5031–5039.

b. Installment Obligation. Defendant’s duty to make periodic payments (the “Installment Obligation”) shall be funded through an assignment to [QUALIFIED ASSIGNMENT COMPANY] and the purchase of an annuity from [ANNUITY ISSUER] rated not less than A- by A.M. Best.

c. Form of Payment. All cash payments shall be made by wire transfer of immediately available funds to the trust account of [PLAINTIFF’S COUNSEL], per wiring instructions delivered in writing.

d. Taxes and Liens. Plaintiff shall be solely responsible for satisfying any Medicaid, Medicare, ERISA, workers’ compensation, or other statutory lien, and for any taxes arising from the Settlement Amount.

[// GUIDANCE: Insert MSP compliance language if Plaintiff is Medicare beneficiary.]

3.3 Conditions Precedent

Payment of the Settlement Amount is conditioned upon:

a. Execution of this Agreement by all Parties;
b. Receipt of valid W-9 from Plaintiff;
c. Delivery of the Stipulation of Discontinuance executed in counterpart; and
d. Court approval, if required under N.Y. Gen. Oblig. Law §§ 15-108 or infant/wrongful-death compromise rules.

3.4 No Admission of Liability

This Agreement constitutes a compromise settlement and shall not be construed as an admission of liability by Defendant.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations

Each Party represents and warrants that:

a. Authority. It has full legal right, power, and authority to execute and perform this Agreement.
b. No Assignment. It has not assigned or transferred any claim released herein.
c. Independent Advice. It has consulted with, or had the opportunity to consult with, independent legal counsel regarding this Agreement.

4.2 Additional Defendant Representations

Defendant represents that the Settlement Amount is within the limits of the Policy identified on Schedule 1, and that Insurer has consented to this settlement.

4.3 Survival

All representations and warranties shall survive execution and delivery of this Agreement.

5. COVENANTS

5.1 Mutual Cooperation

The Parties shall cooperate in good faith to effectuate the terms of this Agreement, including execution of all papers reasonably necessary to implement the Periodic Payment Schedule.

5.2 Confidentiality

a. Definition. “Confidential Information” means the terms of this Agreement and all settlement communications, except to the extent already publicly filed.

b. Non-Disclosure. Unless otherwise required by law or court order, neither Party shall disclose Confidential Information to any third party other than: (i) immediate family; (ii) tax, legal, or financial advisors; or (iii) insurers or re-insurers with a legitimate need to know.

c. Carve-Out for Statutory Reporting. Nothing in this Section 5.2 prohibits disclosure necessary to comply with mandatory reporting under N.Y. Pub. Health Law § 230(13)(a), CMS Section 111, or other applicable law.

5.3 Reporting Obligations

Defendant or Insurer shall file any required medical malpractice settlement reports with the New York State Department of Health and any other governmental body having jurisdiction within the statutory timeframe.

6. DEFAULT & REMEDIES

6.1 Events of Default

a. Payment Default. Failure of Defendant, Insurer, or the annuity issuer to make any payment when due.
b. Breach of Confidentiality. Material breach of Section 5.2.

6.2 Notice and Cure

The non-breaching Party shall provide written notice specifying the alleged default. The breaching Party shall have:

i. ten (10) business days to cure a Payment Default; or
ii. fifteen (15) calendar days to cure any other breach.

6.3 Remedies

a. Acceleration. Upon an uncured Payment Default, the outstanding balance of the Settlement Amount shall accelerate and become immediately due and payable.
b. Consent Judgment. Defendant authorizes entry of judgment in the amount of the accelerated balance plus statutory interest and reasonable attorneys’ fees. A form of Confession of Judgment is attached as Exhibit C.
c. Specific Performance. The Parties acknowledge that money damages may be inadequate for breach of confidentiality; injunctive relief shall be available notwithstanding Section 8.

[// GUIDANCE: Modify if Parties elect arbitration in § 8.]

7. RISK ALLOCATION

7.1 Limitation of Liability

The Settlement Amount constitutes the sole and exclusive monetary liability of Defendant and Insurer to Plaintiff for all Released Claims (defined below). No punitive, exemplary, or additional damages shall be recoverable.

7.2 Mutual Release

a. Release by Plaintiff. Plaintiff, for himself/herself, heirs, executors, administrators, successors, and assigns (collectively, the “Releasors”), irrevocably and unconditionally releases and forever discharges Defendant, its past and present affiliates, shareholders, employees, agents, the Insurer, and their respective successors and assigns (collectively, the “Releasees”) from any and all claims, demands, causes of action, damages, costs, or expenses, whether known or unknown, arising out of or relating to the acts alleged in the Action (“Released Claims”).

b. Release by Defendant. Releasees hereby release Releasors from any claims for costs, sanctions, or fees arising out of the institution or prosecution of the Action.

c. Waiver of Section 1542-Type Rights. The releases extend to claims that the releasing party does not know or suspect to exist, which if known might have materially affected its settlement decision. Each Party waives the protections of any analogous law, including California Civil Code § 1542, to the extent applicable.

7.3 Indemnification

Each Party shall indemnify and hold harmless the other against third-party claims arising from its breach of this Agreement or failure to satisfy liens or subrogation interests identified in Section 3.2(d).

7.4 Force Majeure

No Party shall be liable for delay or failure in performance caused by events beyond its reasonable control, including acts of God, war, terrorism, or changes in law rendering performance illegal; provided, however, that the obligation to pay sums already due is never excused.

8. DISPUTE RESOLUTION

8.1 Governing Law

This Agreement shall be governed by and construed in accordance with the law of the State of New York, without regard to its conflict-of-laws rules.

8.2 Forum Selection

The Parties submit to the exclusive jurisdiction of the state courts located in [COUNTY, NY] for any dispute arising under or relating to this Agreement.

8.3 Optional Arbitration

[ARBITRATION ☐ CHECK IF APPLICABLE]
If the box above is checked, any dispute not resolved informally within thirty (30) days shall be finally resolved by binding arbitration administered by [ADMINISTERING BODY] in [CITY, NY] under its commercial rules. Judgment on the award may be entered in any court of competent jurisdiction.

8.4 Jury Trial Waiver

[JURY WAIVER ☐ CHECK IF APPLICABLE]
IF CHECKED, EACH PARTY IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY LITIGATION ARISING FROM THIS AGREEMENT.

8.5 Attorneys’ Fees

The prevailing Party in any dispute shall be entitled to reasonable attorneys’ fees, costs, and expenses.

9. GENERAL PROVISIONS

9.1 Amendments. No amendment or waiver is effective unless in a writing signed by all Parties.
9.2 Assignment. No Party may assign this Agreement without the prior written consent of the others, except as provided in Section 3.2(b).
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 unenforceable, it shall be reformed to reflect the Parties’ intent, and the remaining provisions shall remain in effect.
9.5 Integration. This Agreement (including Exhibits and Schedules) constitutes the entire agreement of the Parties and supersedes all prior negotiations and writings.
9.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is an original, and all of which together constitute one instrument. Signatures delivered by facsimile, PDF, or via electronic signature platform shall be deemed original.
9.7 Headings. Headings are for convenience only and do not affect interpretation.
9.8 Further Assurances. Each Party shall execute additional documents reasonably necessary to effectuate this Agreement.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

PLAINTIFF:

[PLAINTIFF NAME]

Date: ________

DEFENDANT:

[AUTHORIZED SIGNATORY NAME & TITLE]
[DEFENDANT LEGAL NAME]

Date: ________

INSURER (solely as to Section 3 & 7):

[AUTHORIZED SIGNATORY NAME & TITLE]
[INSURER LEGAL NAME]

Date: ________

[// GUIDANCE: Add notarization or witness lines if required by local court rules or for infant compromises.]

11. SCHEDULES & EXHIBITS

Schedule 1 – Insurance Policy Information
Exhibit A – Stipulation of Discontinuance with Prejudice
Exhibit B – Periodic Payment Schedule (Structured Settlement)
Exhibit C – Confession of Judgment (held in escrow)

[END OF DOCUMENT]