MEDICAL MALPRACTICE SETTLEMENT AGREEMENT
State of Washington
[// GUIDANCE: This template is drafted for use in resolving medical-malpractice claims that have arisen (or could be asserted) in the State of Washington. Bracketed text must be customized. Comments prefaced with “GUIDANCE” are drafting notes and should be deleted prior to 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 and Parties
This Medical Malpractice Settlement Agreement (the “Agreement”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
(a) [CLAIMANT NAME], an individual residing at [ADDRESS] (“Claimant”); and
(b) [PROVIDER LEGAL NAME], a [Washington corporation/professional limited liability company/individual practitioner] with its principal place of business at [ADDRESS] (“Provider”); and
(c) [INSURER LEGAL NAME], a [STATE OF FORMATION] insurance company authorized to do business in Washington and providing professional liability coverage to Provider under policy no. [POLICY NUMBER] (“Insurer”).
Claimant, Provider, and Insurer are each a “Party” and, collectively, the “Parties.”
1.2 Recitals
A. Claimant alleges that on or about [DATE(S) OF CARE], Provider’s acts or omissions constituted medical negligence causing injuries to Claimant (the “Incident”).
B. Provider denies all liability but desires to avoid the expense and uncertainty of litigation.
C. The Parties now wish to settle fully and finally any and all claims arising out of or relating to the Incident on the terms set forth herein, for good and valuable consideration, the sufficiency of which is acknowledged.
NOW, THEREFORE, in consideration of the mutual covenants herein, the Parties agree as follows:
2. DEFINITIONS
For ease of reference, the following capitalized terms have the meanings set forth below. Terms defined in the singular include the plural and vice-versa.
“Agreement” has the meaning stated in Section 1.1.
“Arbitration Election Notice” means a written notice electing arbitration pursuant to Section 8.3.
“Claim” means any cause of action, suit, controversy, grievance, demand, right, or liability arising from or related to the Incident.
“Confidential Information” has the meaning assigned in Section 5.3.
“Court” means the Superior Court of the State of Washington for the County of [COUNTY], or any court of competent appellate jurisdiction.
“Dismissal Documents” has the meaning set forth in Section 5.1(b).
“Effective Date” has the meaning stated in Section 1.1.
“Future Economic Damages” has the meaning set forth in RCW 4.56.250(1)(a).
“Payment Schedule” means the payment arrangement elected under Section 3.2.
“Periodic Payments” means structured payments compliant with RCW 4.56.260 et seq., if elected.
“Release” has the meaning in Section 3.4.
“Settlement Amount” has the meaning in Section 3.1.
3. OPERATIVE PROVISIONS
3.1 Settlement Consideration
Provider (through Insurer) shall pay to Claimant the total settlement amount of $[AMOUNT] (the “Settlement Amount”), inclusive of all economic, noneconomic, and punitive damages, costs, interest, and attorneys’ fees.
[// GUIDANCE: Insert “CONFIDENTIAL SETTLEMENT” watermark if heightened confidentiality is needed.]
3.2 Form of Payment
The Settlement Amount shall be satisfied as follows (check one):
1. ☐ Lump-Sum Payment. Provider/Insurer shall deliver the Settlement Amount via [wire transfer/certified funds] to Claimant (or Claimant’s counsel trust account) within [__] business days after the later of (i) execution of this Agreement by all Parties, or (ii) receipt of the Dismissal Documents executed by Claimant.
2. ☐ Structured Settlement (Periodic Payments).
a. The Parties agree that $[PORTION] of the Settlement Amount allocated to Future Economic Damages shall be paid in Periodic Payments pursuant to RCW 4.56.260, with the remaining balance paid as an initial lump-sum of $[LUMP AMOUNT].
b. The Periodic Payments shall be funded through an annuity issued by [ANNUITY ISSUER] rated at least “A” by A.M. Best, providing payments of $[PAYMENT AMOUNT] per [MONTH/YEAR] commencing on [DATE] and continuing for [NUMBER] years or the life of Claimant, whichever is longer.
c. Provider and Insurer disclaim any residual liability once the annuity contract is delivered to Claimant.
[// GUIDANCE: Adjust the structure to comply with RCW 4.56.260–.270 (court approval required for minors/incompetent persons).]
3.3 Allocation
The Parties agree to the following non-binding allocation solely for tax reporting and structured settlement purposes:
a. Past medical expenses: $[]
b. Future medical expenses: $[]
c. Noneconomic damages: $[]
d. Attorneys’ fees/costs: $[]
3.4 Mutual Release
Upon full receipt of the Settlement Amount, Claimant and each Releasing Party (including heirs, assigns, and legal representatives) irrevocably release and forever discharge Provider, Insurer, and their respective parents, subsidiaries, officers, directors, employees, agents, successors, and assigns (“Released Parties”) from any and all Claims, whether known or unknown, foreseeable or unforeseeable, arising from or relating to the Incident (the “Release”).
Likewise, Provider and Insurer release Claimant from any claims for malicious prosecution, abuse of process, or costs arising from the Incident or the underlying litigation.
3.5 Conditions Precedent
Provider’s payment obligations are conditioned upon:
a. Claimant’s execution and delivery of this Agreement and the Dismissal Documents;
b. Court approval under RCW [4.24.010 / 11.92.060] if the settlement involves a minor or incapacitated person; and
c. Claimant’s compliance with Section 5.2 (Medicare/Medicaid liens).
3.6 No Admission
This Agreement is a compromise of disputed claims and shall not be construed as an admission of liability by any Party.
4. REPRESENTATIONS & WARRANTIES
4.1 Mutual Representations
Each Party represents and warrants that:
a. Authority: It has full power and authority to enter into and perform this Agreement.
b. No Assignment: It has not assigned or transferred any Claim (or defense) released herein.
c. No Reliance: It enters this Agreement in reliance on its own investigation and counsel, not on any representation by an opposing Party except as expressly set forth herein.
4.2 Provider/Insurer Additional Representations
a. Coverage: The Settlement Amount is within the aggregate limits of Provider’s professional liability insurance.
b. Reporting: Insurer will satisfy any insurer reporting obligations under RCW 48.140.020 et seq.
4.3 Claimant Additional Representations
a. Liens: Claimant has disclosed all known Medicare, Medicaid, ERISA, or other statutory liens.
b. Competency: Claimant is of legal age and sound mind, or this Agreement has been approved by the appropriate guardian and Court.
4.4 Survival
The representations and warranties in this Article 4 shall survive the Effective Date.
5. COVENANTS & RESTRICTIONS
5.1 Dismissal of Litigation
a. Pending Actions. If any lawsuit or arbitration concerning the Incident is pending, Claimant shall promptly file a notice of settlement within two (2) court days of the Effective Date.
b. Dismissal Documents. Within five (5) business days after Provider’s payment under Section 3.2, Claimant shall file with the Court a Stipulation and Order of Dismissal With Prejudice, each Party to bear its own fees and costs (collectively, the “Dismissal Documents”).
5.2 Lien Resolution
Claimant shall be solely responsible for satisfying and discharging any and all liens related to the Incident and shall indemnify the Released Parties against any lien claims, except to the extent caused by Provider’s or Insurer’s breach of this Agreement.
5.3 Confidentiality
Except as required by law (including reporting obligations to the National Practitioner Data Bank (“NPDB”), the Washington Medical Commission, or pursuant to RCW 48.140), the Parties shall keep the terms of this Agreement and any underlying settlement negotiations confidential (“Confidential Information”). Disclosure to tax advisors, insurers, auditors, or the Court to effectuate this Agreement is permitted.
5.4 Non-Disparagement
The Parties shall not make any statement intended to harm the reputation of another Party regarding the Incident or the settlement.
6. DEFAULT & REMEDIES
6.1 Events of Default
The following constitute a default (“Default”):
a. Failure to Pay. Provider/Insurer fail to make any payment when due under Section 3.2 and such failure continues five (5) business days after written notice.
b. Breach of Confidentiality. A Party breaches Section 5.3.
c. Failure to Dismiss. Claimant fails to timely file the Dismissal Documents.
6.2 Notice & Cure
The non-defaulting Party shall give written notice specifying the Default. The defaulting Party shall have ten (10) business days to cure (except for payment Defaults, which allow five (5) business days).
6.3 Remedies
a. Specific Enforcement. The Parties acknowledge monetary damages may be inadequate; the non-defaulting Party may seek specific performance.
b. Interest. Unpaid amounts accrue simple interest at [__] % per annum from the due date until paid in full.
c. Attorney Fees. The prevailing Party in any action to enforce this Agreement is entitled to reasonable attorneys’ fees and costs.
7. RISK ALLOCATION
7.1 Mutual Indemnification/Release
The Release in Section 3.4 constitutes a mutual release in lieu of traditional indemnification. Each Party assumes responsibility for its own future acts or omissions.
7.2 Limitation of Liability
Provider’s and Insurer’s aggregate liability to Claimant for the Incident is limited to the Settlement Amount. Claimant’s aggregate liability to Provider and Insurer regarding the Incident is limited to any breach of Sections 5.2 or 5.3.
7.3 Insurance
Provider warrants that the Settlement Amount is fully covered by professional liability insurance, and Insurer shall fund the Settlement Amount from such coverage.
7.4 Force Majeure
No Party shall be liable for failure to perform caused by events beyond its reasonable control, excluding payment obligations.
8. DISPUTE RESOLUTION
8.1 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, without regard to its conflict-of-laws rules.
8.2 Forum Selection
The Superior Court of the State of Washington for the County of [COUNTY] shall have exclusive jurisdiction over any action arising from or related to this Agreement, except as provided in Section 8.3.
8.3 Optional Arbitration
Either Party may elect, by delivering an Arbitration Election Notice within thirty (30) days after a dispute arises, to submit the dispute to binding arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules. If elected:
a. The arbitration shall be seated in [CITY], Washington.
b. The arbitrator shall be a retired Washington Superior Court judge with medical-malpractice experience.
c. The arbitrator’s award may be entered in any court of competent jurisdiction.
8.4 Jury Waiver (Optional)
IF ANY DISPUTE IS HEARD IN COURT, THE PARTIES HEREBY VOLUNTARILY, KNOWINGLY, AND IRREVOCABLY WAIVE THEIR RIGHT TO A TRIAL BY JURY TO THE FULLEST EXTENT PERMITTED BY LAW.
[// GUIDANCE: Strike if the Parties do not wish to waive jury trial.]
9. GENERAL PROVISIONS
9.1 Amendment. This Agreement may be amended only by a written instrument signed by all Parties.
9.2 Waiver. Failure to enforce any provision is not a waiver unless in writing.
9.3 Assignment. No Party may assign its rights or delegate its duties without prior written consent of the other Parties, except Insurer may assign to a successor by merger or acquisition.
9.4 Successors & Assigns. This Agreement binds and benefits the Parties and their respective successors and permitted assigns.
9.5 Severability. If any provision is held invalid, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary.
9.6 Entire Agreement. This Agreement constitutes the entire agreement of the Parties concerning the subject matter and supersedes all prior negotiations or agreements.
9.7 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures transmitted electronically (e.g., via PDF or DocuSign) are binding.
9.8 Headings. Headings are for convenience only and do not affect interpretation.
9.9 Construction. The Parties have jointly negotiated this Agreement; no presumption against the drafter shall apply.
9.10 Notices. All notices under this Agreement must be in writing and delivered by (i) personal service, (ii) certified U.S. Mail (return-receipt requested), or (iii) nationally recognized overnight courier, to the addresses set forth below (or as later designated). Notices are effective on receipt.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
10.1 Claimant
[CLAIMANT NAME]
Date: ________
10.2 Provider
[AUTHORIZED SIGNATORY NAME]
[Title], [Provider Legal Name]
Date: ________
10.3 Insurer
[AUTHORIZED SIGNATORY NAME]
[Title], [Insurer Legal Name]
Date: ________
[// GUIDANCE: Notarization is optional under Washington law for settlement agreements but may be advisable for enforceability. Insert acknowledgment blocks if notarization or witness signatures are required by client policy.]
END OF DOCUMENT