MEDICAL MALPRACTICE SETTLEMENT AGREEMENT

(Texas – Comprehensive Template)

[// GUIDANCE: Drafted for use in resolving medical malpractice claims governed by Texas law. Customize all bracketed placeholders before execution. Ensure compliance with any court-approved minor settlement procedures, Medicare Secondary Payer obligations, and professional-liability carrier requirements.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
   3.1 Settlement Consideration
   3.2 Structured Settlement (Optional)
   3.3 Conditions Precedent and Subsequent
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

Medical Malpractice Settlement Agreement (this “Agreement”) entered into as of [EFFECTIVE DATE] (the “Effective Date”), by and among:

(a) [PATIENT/CLAIMANT LEGAL NAME], an individual residing at [ADDRESS] (“Claimant”);
(b) [HEALTHCARE PROVIDER LEGAL NAME], a [ENTITY TYPE] organized under the laws of [STATE], with principal place of business at [ADDRESS] (“Provider”); and
(c) [INSURER LEGAL NAME] (if applicable) (“Insurer”).

Recitals
A. Claimant has asserted certain medical malpractice claims against Provider arising out of services rendered on or about [DATE(S) OF TREATMENT] (the “Claims”).
B. The Parties desire to resolve fully and finally all actual and potential disputes relating to the Claims without admission of liability, in accordance with Texas law, including Tex. Civ. Prac. & Rem. Code Ann. ch. 74 (“Chapter 74”).
C. In consideration of the mutual promises herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows.

2. DEFINITIONS

The following terms, when capitalized, have the meanings set forth below:

“Action” – any lawsuit, arbitration, or other proceeding pertaining to the Claims.

“Agreement” – this Medical Malpractice Settlement Agreement, including all Exhibits and Schedules.

“Applicable Law” – collectively, (i) Chapter 74, including the non-economic damage limitations in Tex. Civ. Prac. & Rem. Code Ann. § 74.301; (ii) federal settlement-reporting statutes (e.g., 42 U.S.C. § 11131); and (iii) all other laws, regulations, and court rules governing the Claims.

“Claims” – as defined in Recital A.

“Confidential Information” – the terms of this Agreement and any non-public medical or personal data relating to the Parties.

“Effective Date” – as first set forth above.

“Releasees” – Provider, Insurer, their respective parents, subsidiaries, affiliates, owners, officers, directors, employees, agents, successors, and assigns.

“Settlement Amount” – the total consideration payable under Section 3.1.

“Structured Settlement” – periodic payments established under Section 3.2, if elected.

[// GUIDANCE: Add or delete definitions to match deal specifics. Ensure consistent usage throughout.]

3. OPERATIVE PROVISIONS

3.1 Settlement Consideration

(a) In full satisfaction of the Claims, Releasees shall pay Claimant the aggregate Settlement Amount of [US$ ____] (the “Total Payment”), allocated as follows:

i. Non-economic damages: [US$ _____] (subject to statutory cap under Chapter 74);
ii. Economic damages (past & future): [US$ _____];
iii. Costs, expenses, and attorneys’ fees: [US$ _____]; and
iv. Penalties/interest (if any): [US$ _____].

(b) Payment Method:
• Lump-Sum Option – [DESCRIBE WIRE OR CHECK DELIVERY, DEADLINE; e.g., within 14 days of satisfaction of Conditions Precedent]; or
• Structured Settlement Option – governed by Section 3.2.

[// GUIDANCE: Confirm Medicare/Medicaid lien resolution and ERISA subrogation before disbursing funds.]

3.2 Structured Settlement (Optional)

(a) If elected, Releasees shall fund an annuity contract issued by [QUALIFIED ASSIGNMENT COMPANY] providing periodic payments in accordance with Schedule 3.2 (the “Payment Schedule”).

(b) The Parties intend the Structured Settlement to satisfy the requirements of I.R.C. §§ 104(a)(2) & 130 and Texas insurance regulations governing structured settlements.

(c) Claimant shall have no right to accelerate, defer, increase, or decrease the periodic payments.

3.3 Conditions Precedent and Subsequent

(a) Execution of mutually satisfactory Medicare/Medicaid lien waivers.
(b) Court approval if required (e.g., minor/incompetent Claimant).
(c) Delivery of executed dismissal with prejudice per Section 5.1.
Failure to satisfy a Condition Precedent relieves Releasees of payment obligation without constituting default.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations
Each Party represents and warrants that:
(a) It has full authority and legal capacity to enter into and perform this Agreement;
(b) No assignment or transfer of the Claims or defenses has been made;
(c) Execution and performance do not violate any law or contract; and
(d) It has had the opportunity to consult independent counsel regarding this Agreement.

4.2 Survival
All representations and warranties survive the Effective Date for a period of [Twelve (12) months].

5. COVENANTS & RESTRICTIONS

5.1 Dismissal of Action
Within [three (3)] business days after receipt of the Settlement Amount (or first periodic payment), Claimant shall file a dismissal with prejudice of the Action in [COURT & CAUSE NUMBER].

5.2 Mutual Release
(a) Upon receipt of the Settlement Amount, Claimant irrevocably releases and forever discharges the Releasees from any and all claims, demands, causes of action, damages, or liabilities, whether known or unknown, arising out of the medical services described in Recital A.
(b) Provider and Insurer reciprocally release Claimant on the same basis.
(c) The releases extend to future consequences of the known injuries but exclude enforcement of this Agreement.

5.3 Confidentiality
Except as necessary to satisfy reporting obligations under Applicable Law, the Parties shall maintain the confidentiality of this Agreement and will not disclose its terms to any third party without prior written consent.

[// GUIDANCE: Consider adding liquidated-damages remedy for breach of confidentiality if enforceable under Tex. law.]

5.4 Non-Disparagement
Each Party agrees not to make any statement intended to disparage another Party with respect to matters covered by this Agreement.

5.5 No Admission of Liability
This Agreement is a compromise of disputed claims; neither payment nor execution constitutes an admission of liability.

6. DEFAULT & REMEDIES

6.1 Events of Default
(a) Failure of Releasees to deliver the Settlement Amount when due;
(b) Failure of Claimant to execute required dismissal documents; or
(c) Breach of confidentiality obligations.

6.2 Notice; Cure
The non-breaching Party shall give written notice specifying the default. The breaching Party has [ten (10)] days to cure.

6.3 Remedies
(a) Monetary damages, including reasonable attorneys’ fees and costs;
(b) Specific performance;
(c) Entry of agreed judgment (Exhibit 6.3) for unpaid Settlement Amount plus interest at [_____ %] per annum from the original due date; and
(d) Any other relief available at law or in equity.

6.4 Limitation
Except for willful misconduct or breach of Section 5.3 (Confidentiality), the liability of any Party is limited as provided in Section 7.2.

7. RISK ALLOCATION

7.1 Indemnification
Each Party (“Indemnitor”) shall defend, indemnify, and hold harmless the other Parties (“Indemnitees”) against any loss arising from breach of this Agreement or falsity of any representation, subject to the liability cap in Section 7.2.

7.2 Limitation of Liability
The aggregate liability of any Party under this Agreement shall not exceed the Settlement Amount, except with respect to (i) obligations to pay the Settlement Amount, (ii) fraud, or (iii) intentional breach of confidentiality.

7.3 Insurance
Provider represents that the Settlement Amount is within the limits of its professional-liability policy numbered [POLICY NUMBER] issued by Insurer, which policy shall remain in force until the Settlement Amount is paid in full.

7.4 Force Majeure
No Party shall be liable for delay or failure to perform caused by events beyond its reasonable control (e.g., acts of God, war, terrorism, governmental action), provided that prompt notice is given and performance resumes as soon as practicable.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Agreement and any dispute arising hereunder shall be governed by, and construed in accordance with, the laws of the State of Texas without regard to conflict-of-laws principles.

8.2 Forum Selection
The state courts of [COUNTY], Texas shall have exclusive jurisdiction, and the Parties irrevocably submit to and waive any objection to such forum.

8.3 Arbitration (Optional)
[ ] The Parties elect to submit disputes to binding arbitration under the Texas Arbitration Act, Tex. Civ. Prac. & Rem. Code Ann. ch. 171, administered by [NAME OF ADR PROVIDER] in accordance with its health-care rules.
[// GUIDANCE: Check the box or delete Section 8.3 if arbitration is not desired.]

8.4 Jury Waiver (Optional)
[ ] EACH PARTY KNOWINGLY, VOLUNTARILY, AND IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION ARISING OUT OF THIS AGREEMENT.
[// GUIDANCE: Jury waivers are enforceable in Texas if conspicuous; keep in uppercase bold.]

9. GENERAL PROVISIONS

9.1 Amendment; Waiver
No modification of this Agreement is effective unless in a writing signed by all Parties. No waiver is effective unless in writing and shall not constitute waiver of any subsequent breach.

9.2 Assignment
No Party may assign or delegate its rights or duties without prior written consent of the others, except that Insurer may assign payment obligations to a qualified assignment company for a Structured Settlement.

9.3 Successors & Assigns
This Agreement binds and benefits the Parties and their permitted successors and assigns.

9.4 Severability
If any provision is held invalid, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to effectuate the Parties’ intent.

9.5 Entire Agreement
This Agreement (including Exhibits and Schedules) constitutes the complete and exclusive statement of the Parties’ understanding and supersedes all prior negotiations with respect to the subject matter.

9.6 Counterparts; Electronic Signatures
This Agreement may be executed in multiple counterparts, each of which is deemed an original and all of which constitute one instrument. Electronic signatures are binding to the fullest extent permitted by Applicable Law, including the Texas Uniform Electronic Transactions Act.

10. EXECUTION BLOCK

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

[// GUIDANCE: Attach notary acknowledgments if required by court rule or for minor settlements.]

STATUTORY ACKNOWLEDGMENT OF DAMAGE CAPS

The Parties acknowledge that Texas law limits non-economic damages recoverable in a health-care liability claim to $250,000 per claimant as to all physicians and health-care providers, with additional caps applicable to health-care institutions, pursuant to Tex. Civ. Prac. & Rem. Code Ann. § 74.301. The Settlement Amount reflects consideration of, but is not limited by, such statutory caps.

REPORTING & COMPLIANCE SCHEDULE

Schedule 10.1 sets forth the division of responsibility for:
1. Filing required settlement reports with the Texas Medical Board;
2. Submitting medical malpractice payment reports to the National Practitioner Data Bank (NPDB); and
3. Notifying professional-liability carriers.

[// GUIDANCE: Populate Schedule 10.1 to allocate tasks and deadlines. Failure to report can result in licensure penalties.]

[END OF DOCUMENT]