Personal Injury Settlement Agreement - Louisiana

PERSONAL INJURY SETTLEMENT AGREEMENT

AND MUTUAL RELEASE OF IDENTIFIED CLAIMS

(Louisiana – Compromise under La. Civ. Code art. 3071)

TABLE OF CONTENTS

1. Document Header
2. Definitions

3. Operative Provisions
   3.1 Settlement Consideration
   3.2 Dismissal of Litigation / Claims
   3.3 Court Approval for Minor or Incompetent Claimant
   3.4 Medicare/Medicaid and Other Liens
   3.5 Tax Treatment

4. Representations & Warranties

5. Covenants & Restrictions
6. Default & Remedies

7. Risk Allocation
   7.1 Mutual Release
   7.2 Indemnification re Liens
   7.3 Limitation of Liability
   7.4 Structured Settlement Compliance

8. Dispute Resolution

9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

This Personal Injury Settlement Agreement and Mutual Release of All Claims (this “Agreement”) is entered into and made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

(a) [PLAINTIFF FULL LEGAL NAME], an individual with an address at [ADDRESS] (“Plaintiff”); and
(b) [DEFENDANT FULL LEGAL NAME], a [ENTITY TYPE] organized under the laws of [STATE], with its principal place of business at [ADDRESS] (“Defendant”).

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

Recitals

A. A dispute has arisen regarding alleged personal injuries sustained by Plaintiff on or about [DATE OF INCIDENT] in [PARISH, LOUISIANA] (the “Incident”).
B. The Parties desire to settle the claims each owns concerning the Incident that are expressly identified in Section 7.1, without admission of liability, under La. Civ. Code art. 3071.
C. The Parties intend this Agreement to be a binding compromise and settlement enforceable in accordance with its terms.

NOW, THEREFORE, in consideration of the mutual promises, covenants, releases, and payments set forth herein, and for other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, the Parties agree as follows:

2. DEFINITIONS

For purposes of this Agreement, the following capitalized terms shall have the meanings set forth below. All references to Sections are to Sections of this Agreement unless otherwise indicated.

“Agreement” means this Personal Injury Settlement Agreement and Mutual Release of All Claims.

“Claim(s)” means the signing Party's own claims arising from the Incident, whether presently known or unknown, only to the extent expressly released in Section 7.1. Rights acquired after this Agreement are excluded unless specifically identified there.

“Court” means the [NAME OF LOUISIANA DISTRICT COURT] located in [PARISH], Louisiana, or such other court of competent jurisdiction as may approve this Agreement pursuant to Section 3.3.

“Effective Date” has the meaning set forth in the Document Header.

“Minor” means a person who has not attained the age of eighteen (18) years at the time of signing this Agreement.

“Parties” and “Party(ies)” have the meanings set forth in the Document Header.

“Settlement Amount” has the meaning set forth in Section 3.1(a).

“Structured Settlement” means periodic payments, if selected in Section 3.1(b), on the terms signed in Exhibit A.

3. OPERATIVE PROVISIONS

3.1 Settlement Consideration

(a) Lump-Sum Payment. Select one: ☐ Defendant shall pay Plaintiff US $[AMOUNT] (the “Settlement Amount”) by [WIRE / SETTLEMENT DRAFT] payable to [PAYEE NAME] within [NUMBER] business days after execution by all Parties and any required approval under Section 3.3. ☐ No lump sum is payable; the Settlement Amount is $0. Any tax form reasonably required for payment shall be requested and supplied separately.

(b) Optional Structured Settlement. ☐ None. ☐ The Parties agree to the periodic payments, funding method, issuer or assignee, guarantees if any, and transfer terms stated in signed Exhibit A (Structured Settlement Schedule). A qualified assignment applies only if Exhibit A expressly selects one and its requirements are met.

(c) Consideration. The Settlement Amount, if any, and the periodic payments expressly stated in signed Exhibit A are the consideration for the releases granted herein. No additional sums are owed unless expressly stated in this Agreement.

3.2 Dismissal of Litigation / Claims

(a) Within five (5) business days after cleared receipt of the Settlement Amount (or the funding and commencement of any agreed structured payments), Plaintiff shall file a dismissal with prejudice of only these identified actions: [CASE CAPTION / DOCKET NO. / NONE]. Each Party bears its own costs and attorneys' fees for those actions unless otherwise stated in this Agreement.

(b) If no lawsuit has been filed, no court dismissal is required. Plaintiff shall not later assert a Claim released under Section 7.1. Any identified pending administrative or insurance claim to be withdrawn is listed here: [CLAIM AND WITHDRAWAL METHOD / NONE].

3.3 Court Approval for Minor Claimant

(a) If Plaintiff is a Minor, the tutor's compromise is contingent upon court approval under La. Code Civ. Proc. arts. 4265 and 4271. An adult who cannot act personally requires a separate review of the applicable authority and approval procedure before this Agreement is signed.

(b) The tutor shall petition the court with recommendations, reasons, and the undertutor's written concurrence. If the undertutor does not concur, the tutor may proceed by contradictory motion under art. 4271. The Parties shall obtain the court's judgment approving a minor's compromise (the “Approval Order”) before it takes effect. Approval filing costs shall be paid by [PARTY].

(c) If the Approval Order is not obtained within [NUMBER] days after signing, either Party may terminate this Agreement by written notice, unless the Parties extend that date in a signed writing. Termination does not itself release the minor's claim.

3.4 Medicare/Medicaid and Other Liens

(a) After reasonable inquiry, Plaintiff shall list in Schedule 1 each known or asserted lien, subrogation claim, or reimbursement interest concerning the settlement, including any asserted interest of Medicare, Medicaid, TRICARE, VA, a workers' compensation carrier, hospital, or private insurer.

(b) Schedule 1 shall identify each asserted interest, the holder, the amount claimed, and any agreed direct payment, holdback, escrow, dispute, or resolution procedure. Responsibility for an interest depends on applicable law and the signed allocation in Schedule 1; listing it does not create a blanket indemnity.

(c) Any settlement holdback shall state its amount, holder, purpose, release condition, and remaining-payee instructions in Schedule 1. Neither Party may impose an unlisted holdback solely under this paragraph.

3.5 Tax Treatment

The Parties make no representation concerning the tax consequences of this settlement. They shall record in Exhibit B any proposed allocation supported by the underlying facts and obtain tax advice before signing.

4. REPRESENTATIONS & WARRANTIES

Each Party represents and warrants, as of the Effective Date, that:

4.1 Authority. It has full right, power, and authority to enter into and perform this Agreement; all requisite corporate or personal actions have been taken.

4.2 No Assignment. It has not assigned, transferred, or otherwise conveyed any Claim released herein to any third party.

4.3 No Reliance. It enters into this Agreement relying solely on the terms set forth herein and on its own judgment and that of its counsel, not on any statement or representation by the opposing Party or its counsel.

4.4 No Pending Bankruptcy. It is not a debtor in any bankruptcy proceeding that would impair its ability to perform hereunder.

4.5 Material Breach Consequences. Any material inaccuracy in the foregoing representations shall constitute an Event of Default under Section 6.

All representations and warranties shall survive the Effective Date and the consummation of the transactions contemplated herein.

5. COVENANTS & RESTRICTIONS

5.1 Confidentiality (Optional). ☐ If checked, the Parties shall keep the terms of this Agreement confidential, except as required by law or court order or as needed for legal, tax, insurance, or benefit advice and claim resolution. ☐ No confidentiality covenant is selected.

5.2 Non-Disparagement. The Parties agree not to make or cause to be made any statement that disparages or damages the reputation of the other Party regarding the Incident or this settlement.

5.3 Cooperation. Each Party shall execute all documents and take all further actions reasonably necessary to effectuate the intent of this Agreement, including delivery of dismissal pleadings and lien releases.

6. DEFAULT & REMEDIES

6.1 Events of Default. The following constitute an “Event of Default”:
(a) Failure of Defendant to timely tender the Settlement Amount or structured annuity funding;
(b) Failure of Plaintiff to file stipulated dismissals within the time set forth in Section 3.2;
(c) Material breach of any representation, warranty, or covenant contained herein.

6.2 Notice and Cure. The non-defaulting Party shall provide written notice specifying the alleged default. The defaulting Party shall have ten (10) business days to cure the default, except that payment defaults must be cured within five (5) business days.

6.3 Remedies. If an Event of Default is not timely cured, the non-defaulting Party may:
(a) Seek payment of an amount due, specific performance where available, and interest if recoverable under applicable law;
(b) Seek attorneys’ fees, court costs, and expenses only to the extent recoverable under this Agreement or applicable law;
(c) Pursue any other remedy available at law or in equity consistent with Louisiana public policy.

7. RISK ALLOCATION

7.1 Mutual Release

(a) Released Parties. “Released Parties” means Defendant and only these additional persons or entities identified by legal name: [LIST / NONE]. No person is included solely because of a relationship with Defendant. Plaintiff is the sole person released by Defendant unless another person signs a separate, claim-specific release.

(b) Scope of Release. Upon cleared payment of the Settlement Amount, completion of any required structured-settlement funding, and any required Approval Order, Plaintiff releases only Plaintiff's own Claims against the Released Parties arising from the Incident in these categories: [DESCRIBE INJURY, LOSS, TIME PERIOD, AND CLAIM CATEGORIES]. Defendant releases only Defendant's own Claims against Plaintiff arising from the Incident in these categories: [DESCRIBE / NONE]. Neither Party releases a claim owned by a nonsigner, an obligation created by this Agreement, or conduct occurring after signing.

(c) Unknown Losses and Later Rights. The releases in subsection (b) cover known and unknown losses within the described claims. Under La. Civ. Code art. 3078, a compromise does not affect rights subsequently acquired by a Party unless expressly included. The only later-acquired rights, if any, expressly included here are: [SPECIFY PRECISE RIGHT AND CONNECTION TO INCIDENT / NONE]. La. Civ. Code art. 3076 limits this compromise to differences the Parties clearly intend to settle.

(d) No Admission. This Agreement and any consideration exchanged constitute a compromise of disputed claims and shall not be construed as an admission of liability or fault.

7.2 Indemnification re Liens

Each Party remains responsible for its own representations and for any payment or resolution it expressly undertakes in signed Schedule 1. No Party assumes another person's lien, defense cost, or reimbursement duty solely by signing this Agreement.

7.3 Limitation of Liability

The payment and funding terms in Section 3.1 are the consideration for the claims expressly released in Section 7.1. This Section creates no separate cap on liability for breach of this Agreement, fraud, or claims excluded from the release.

7.4 Structured Settlement Compliance

If a Structured Settlement is selected, the Parties shall state the payment and funding terms in Exhibit A and obtain tax and transfer advice for that specific arrangement. Any transfer of periodic-payment rights remains subject to applicable law and the signed terms of Exhibit A.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Louisiana, without regard to its conflict-of-laws rules.

8.2 Forum Selection. An action to enforce this Agreement may be brought in a court with proper jurisdiction and venue under applicable law.

8.3 Waiver of Jury Trial. INTENTIONALLY OMITTED.

8.4 Arbitration. INTENTIONALLY OMITTED.

8.5 Equitable Relief. Nothing herein restricts a Party from seeking temporary restraining orders, preliminary injunctions, or other equitable relief to enforce this Agreement.

9. GENERAL PROVISIONS

9.1 Entire Agreement. This Agreement, together with all Exhibits and Schedules, constitutes the entire understanding between the Parties and supersedes all prior negotiations and agreements regarding the subject matter hereof.

9.2 Amendments; Waivers. No amendment or waiver of any provision shall be effective unless in a written instrument signed by all Parties. Any waiver shall be limited to its express terms.

9.3 Assignment. No Party may assign or delegate its rights or obligations under this Agreement without the prior written consent of the other Party, except that Defendant may assign its payment obligations to an annuity issuer under Section 3.1(b).

9.4 Successors & Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.

9.5 Severability. If a provision is held invalid or unenforceable, the remaining provisions remain effective to the extent permitted by law.

9.6 Counterparts; Electronic Signatures. This Agreement may be signed in counterparts that together form one agreement. The Parties agree to sign and receive it electronically, subject to applicable law.

9.7 Headings. Section headings are for convenience only and shall not affect interpretation.

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 NAME]

Date: ________________________

EXHIBIT A

STRUCTURED SETTLEMENT SCHEDULE
[Insert annuity payment dates, amounts, payee, and guaranteed period.]

EXHIBIT B

WAGE ALLOCATION (IF APPLICABLE)
[Record any fact-supported wage allocation, if applicable; obtain tax advice before signing.]

SCHEDULE 1

LIEN DISCLOSURE
[List Medicare conditional payments, Medicaid liens, ERISA liens, workers’ compensation liens, hospital or provider liens, child support liens, etc.]

End of Template