Personal Injury Settlement Agreement - North Dakota

PERSONAL INJURY SETTLEMENT AND RELEASE AGREEMENT

(North Dakota – Template)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Schedule 1 – Payment Terms (Lump-Sum / Structured)
12. Schedule 2 – Liens & Subrogation Interests

1. DOCUMENT HEADER

1.1 Title

Personal Injury Settlement and Mutual Release Agreement (the “Agreement”)

1.2 Parties

This Agreement is entered into by and between:

(a) [CLAIMANT NAME], an individual [and natural parent/guardian of [MINOR NAME]] with a principal residence at [ADDRESS] (“Claimant”); and

(b) [DEFENDANT NAME], a [corporation/individual] with a principal address at [ADDRESS] (“Released Party”).

Claimant and Released Party are each a “Party” and, collectively, the “Parties.”

1.3 Recitals

A. On or about [DATE OF INCIDENT], Claimant allegedly sustained personal injuries and other damages arising out of an incident located at [LOCATION] (the “Incident”).
B. Claimant has asserted, or may assert, personal-injury claims against Released Party (the “Action”).
C. Without admission of liability, the Parties desire to fully and finally settle all disputes arising from the Incident on the terms set forth herein.

1.4 Effective Date & Governing Jurisdiction

This Agreement becomes effective on the date last signed by the Parties (the “Effective Date”) and shall be governed by the substantive tort law of the State of North Dakota.

2. DEFINITIONS

“Action” – the actual or potential civil proceeding(s) relating to the Incident.
“Claim(s)” – any past, present, or future cause of action, demand, or damage of whatever nature arising out of or related to the Incident.
“Court” – the District Court of the State of North Dakota having subject-matter jurisdiction over the Action.
“Effective Date” – as defined in Section 1.4.
“Liens” – any statutory, contractual, or equitable right of reimbursement, including but not limited to Medicare, Medicaid, ERISA, workers’ compensation, and medical-provider liens.
“Minor” – any settling individual under eighteen (18) years of age.
“Released Claims” – as defined in Section 3.2.
“Released Parties” – only the persons and entities identified by legal name in Section 3.2(a).
“Settlement Amount” – the total consideration described in Section 3.1 and Schedule 1.
“Structured Settlement” – periodic payment arrangement established under Schedule 1, if elected.

3. OPERATIVE PROVISIONS

3.1 Consideration; Payment Mechanics

(a) Settlement Amount. Released Party shall pay Claimant the total sum of [US$ AMOUNT] (inclusive of attorneys’ fees and costs) in accordance with Schedule 1.
(b) Funding Deadline. Payment shall be funded no later than [NUMBER] calendar days following (i) execution of this Agreement by all Parties, and (ii) receipt by Released Party of any Court approval required under Section 3.4.
(c) Conditions Precedent. Payment is conditioned on Claimant’s delivery of:
 (i) an executed original of this Agreement;
 (ii) a stipulation of dismissal signed by all parties who have appeared, to be filed after payment if Rule 41 permits dismissal by stipulation; and
 (iii) Court-approved guardianship or compromise order, if applicable.

3.2 Mutual Release of Claims

(a) Release by Claimant. Upon receipt of the Settlement Amount, Claimant releases only the Released Parties and claims completed here: Released Parties by legal name [________________________________]; known claim categories and date range [________________________________]; reserved claims, persons, benefits, liens, and reimbursement rights [________________________________].
(b) Release by Released Party. Upon payment of the Settlement Amount, Released Party releases Claimant from all counterclaims, contribution actions, or indemnity claims related to the Incident.
(c) Scope. The Released Claims include only the claim categories owned by Claimant and identified in Section 3.2(a). This Agreement does not release a consortium or other derivative claim owned by another person unless that person separately signs an agreement releasing that claim.
(d) Unknown Claims. This general release does not extend to a claim Claimant did not know or suspect to exist at signing if knowledge of it would have materially affected the settlement. N.D.C.C. § 9-13-02. The parties must identify and address any specifically contemplated but unasserted claim separately, after North Dakota counsel reviews its proposed scope and effect. This Agreement does not itself release such a claim.

3.3 No Admission of Liability

This Agreement constitutes a compromise settlement. Neither execution nor performance shall be construed as an admission of liability, fault, or wrongdoing by any Party.

3.4 Minor Settlement Procedure (If Applicable)

(a) Representation and Separate Approval Inquiry. N.D. R. Civ. P. 17(b) governs who may sue or defend for a Minor and when the court must or may appoint a guardian ad litem; it does not itself create a minor-settlement approval procedure. Before execution or funding, the Parties shall identify and satisfy any separate approval, conservatorship, protective-order, or court-order requirement applicable to the Minor and the settlement proceeds.
(b) Guardian ad Litem. The Parties shall cooperate in obtaining a guardian ad litem or other protective order if required or directed by the court under N.D. R. Civ. P. 17(b) or other applicable law.
(c) Protection of Proceeds. Any lump-sum or structured payment for a Minor shall use the payee, account, annuity, transfer, and withdrawal restrictions required by the approving court or other applicable authority. Do not assume that anti-assignment or non-commutation language is mandated merely because payments are structured.
(d) Early-Settlement Warning. N.D.C.C. § 9-08-08 makes a personal-injury settlement voidable if made within thirty days after the injury, or while the injured person remains under disability from the injury and within six months after the injury. North Dakota counsel should confirm enforceability before execution or funding.

3.5 Structured Settlement (If Elected)

(a) Assignment and Annuity. Released Party may satisfy all or part of the Settlement Amount by purchasing an annuity contract from a qualified assignment company, with payments to Claimant as set forth in Schedule 1.
(b) Tax Review. Before selecting any annuity or assignment arrangement, the Parties shall document the intended tax treatment in Schedule 1 after independent review. This Agreement does not guarantee a tax result.
(c) Non-Commutation. Claimant shall have no right to accelerate, assign, pledge, or otherwise encumber Structure payments, except as permitted by North Dakota law.

4. REPRESENTATIONS & WARRANTIES

4.1 Claimant
(a) Capacity and Authority to Contract;
(b) Sole Ownership of Claims; no prior assignment;
(c) No bankruptcy pending or contemplated;
(d) Advice of Counsel: Claimant has consulted with independent counsel and understands the legal effect of this Agreement.

4.2 Released Party
(a) Corporate authority (if entity);
(b) Execution constitutes valid and binding obligation;
(c) No conflicting agreements prohibit settlement.

4.3 Survival. All representations and warranties survive execution and delivery of this Agreement.

5. COVENANTS & RESTRICTIONS

5.1 Dismissal of Action. Within three (3) business days after receipt of the Settlement Amount (or Court approval, if later), the Parties shall file the signed stipulation for dismissal with prejudice if Rule 41 permits it; otherwise they shall seek the required court order. Each Party bears its own costs.

5.2 Confidentiality [OPTIONAL]. Except as required by law, Claimant shall keep the terms of this Agreement confidential.

5.3 Liens & Subrogation.
(a) Schedule 2 must identify each asserted recovery interest, its basis and status, any holdback or direct payment, the responsible person, and required proof of resolution.
(b) No blanket indemnity applies to disclosed or undisclosed interests. Any claim-specific indemnity must identify the exact third-party claim and negotiated procedure.

5.4 Cooperation in Approvals. The Parties shall cooperate in obtaining any court or governmental approval required for this settlement, including Medicare/Medicaid compliance documentation, if applicable.

6. DEFAULT & REMEDIES

6.1 Failure to Pay. If Released Party fails to fund the Settlement Amount within the deadline in Section 3.1(b), Claimant may:
 (a) seek enforcement of this Agreement and any interest available under the Agreement and applicable law at [RATE]% per annum, or
 (b) seek rescission if available under applicable law and pursue claims that remain legally available.

6.2 Breach of Confidentiality. In the event of an uncured breach of Section 5.2, the non-breaching Party may seek monetary damages or injunctive relief.

6.3 Attorney Fees & Costs. Each Party bears its own attorney fees in an action to enforce this Agreement except to the extent a court awards fees under applicable law. This Agreement does not require attorney fees on default in payment or collection of an evidence of debt contrary to N.D.C.C. § 28-26-04. Recoverable court costs remain subject to applicable law.

7. RISK ALLOCATION

7.1 Claim-Specific Indemnity Only. Any indemnity must identify the exact third-party claim, indemnifying and protected persons, notice procedure, defense control, settlement authority, exclusions, and liability measure in Schedule 2. A private allocation does not alter an obligation imposed directly by governing law.

7.2 No Exemption for Prohibited Conduct. The Settlement Amount is the agreed consideration for the completed release in Section 3.2. Nothing in this Agreement exempts a person from responsibility for that person's own fraud, willful injury, or violation of law, whether willful or negligent. N.D.C.C. § 9-08-02.

7.3 Force Majeure. No Party shall be liable for delay in performance caused by events beyond its reasonable control, provided such Party gives prompt notice and resumes performance as soon as practicable.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Agreement is governed by the substantive laws of the State of North Dakota, without regard to conflict-of-laws principles.

8.2 Forum Selection. Any dispute arising under this Agreement shall be resolved exclusively in the District Court of [COUNTY], State of North Dakota.

8.3 Arbitration & Jury Trial. This Agreement does not require arbitration or waive any right to jury trial.

9. GENERAL PROVISIONS

9.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations and agreements concerning the subject matter hereof.

9.2 Amendment; Waiver. No amendment or waiver is effective unless in writing and signed by all Parties. Waiver of any breach does not constitute waiver of any other or subsequent breach.

9.3 Assignment. No Party may assign its rights or delegate its duties without the prior written consent of all other Parties, except that Released Party may assign obligations to a qualified assignment company for purposes of a Structured Settlement.

9.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it valid.

9.5 Successors & Assigns. This Agreement binds and inures to the benefit of the Parties and their respective heirs, executors, administrators, successors, and permitted assigns.

9.6 Counterparts; Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which the Parties agree to treat as an original, and all of which together constitute one instrument. The Parties agree to accept signatures delivered electronically to the extent permitted by applicable law and any court approval requirements.

10. EXECUTION BLOCK

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

[If Minor:]
Signature of Parent/Guardian: ________________________
Name: ___________________________
Date: ___________________________

11. SCHEDULE 1 – PAYMENT TERMS

Choose one of the following options (delete non-applicable):

1. Lump-Sum Payment:
    Amount: US$ ☐
    Payment Method: [Wire transfer / Certified check] to [Trust Account Name].
    Funding Date: ☐.

2. Structured Settlement:
    Total Present Value: US$ ☐
    Payee: [CLAIMANT / MINOR NAME]
    Periodic Payments:
    • $[___] on [DATE] and annually thereafter for [___] years.
    • $[___] lump-sum on [DATE].
    Annuity Issuer: [COMPANY NAME], rated not less than A- by A.M. Best.
    Qualified Assignment Company: [NAME], assuming Released Party’s payment obligation.

12. SCHEDULE 2 – LIENS & SUBROGATION INTERESTS

1. Medicare Conditional Payment Amount: $[___]
2. Medicaid: $[___]
3. Private Health Insurance: $[___]
4. Hospital/Provider Liens: $[___]
5. Workers’ Compensation Carrier: $[___]
6. Other: $[___]