PERSONAL INJURY SETTLEMENT AGREEMENT AND MUTUAL RELEASE
(New Mexico)
[// GUIDANCE: This template is intentionally comprehensive. Delete any optional bracketed language or entire provisions not required for the specific matter. Confirm all placeholders are completed and modify defined terms as needed.]
Document Metadata
- Governing Law: New Mexico state tort law
- Forum Selection: State courts of New Mexico (exclusive)
- Arbitration: Not applicable
- Jury Waiver: Not applicable
- Injunctive Relief: Not applicable
- Indemnification: Mutual release (see §8)
- Liability Cap: Settlement Amount (see §2)
TABLE OF CONTENTS
- Definitions
- Settlement Payment; Structured Settlement
- Mutual Release
- Dismissal of Proceedings; Minor Settlement Approval
- Representations & Warranties
- Covenants
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
RECITALS
A. On or about [DATE OF INCIDENT], [CLAIMANT NAME] (“Claimant”) allegedly sustained injuries and other damages as a result of an incident occurring at [LOCATION] (the “Incident”).
B. Claimant has asserted, or may assert, claims (“Claims”) against [DEFENDANT NAME] and/or its current and former parents, subsidiaries, affiliates, officers, directors, employees, insurers, reinsurers, successors, and assigns (collectively, the “Released Parties”).
C. The Parties now desire to fully and finally resolve all matters arising out of or relating to the Incident, without admission of liability, upon the terms set forth below.
NOW, THEREFORE, the Parties agree as follows:
1. DEFINITIONS
For purposes of this Agreement, the following capitalized terms have the meanings set forth below. All definitions apply equally to singular and plural forms, and any gender includes every gender. Section cross-references refer to this Agreement unless otherwise noted.
“Action” means any lawsuit, arbitration, or administrative proceeding arising out of the Incident.
“Agreement” means this Personal Injury Settlement Agreement and Mutual Release, including all Exhibits and Schedules.
“Claim(s)” has the meaning assigned in Recital B.
“Court Approval” means written approval or order entered by a court of competent jurisdiction in New Mexico authorizing settlement of a minor’s claim in accordance with applicable law.
“Effective Date” means the date on which the later of the Parties executes this Agreement, unless Court Approval is required, in which case the Effective Date shall be the date Court Approval becomes final and non-appealable.
“Minor” means any Claimant who has not reached the age of majority under New Mexico law.
“Parties” means Claimant and Released Party (each, a “Party”).
“Settlement Amount” means the total monetary consideration payable pursuant to Section 2, inclusive of any periodic payments, annuity premiums, and future payment obligations.
“Structured Settlement” means a series of periodic payments established under Section 2.2 in compliance with the New Mexico Structured Settlement Protection Act (NMSA 1978, §§ 44-7A-1 et seq.).
2. SETTLEMENT PAYMENT; STRUCTURED SETTLEMENT
2.1 Lump-Sum Payment.
(a) Within [NUMBER] business days after the Effective Date, Released Party shall pay Claimant the lump-sum amount of [US $__] (the “Lump-Sum Payment”) by [wire transfer / check] to the trust account of [LAW FIRM], IOLTA No. [__].
(b) The Lump-Sum Payment, together with any Structured Settlement established under Section 2.2, constitutes the full and final Settlement Amount.
2.2 Structured Settlement (Optional).
(a) In lieu of, or in addition to, the Lump-Sum Payment, the Parties may elect to fund a Structured Settlement providing for periodic payments as set forth on Schedule A (the “Periodic Payments”).
(b) The Periodic Payments shall be:
(i) funded through the purchase of an annuity contract issued by [ANNUITY ISSUER], rated not less than A- by A.M. Best;
(ii) irrevocably assigned to an assignment company in accordance with 26 U.S.C. §130; and
(iii) established in compliance with the New Mexico Structured Settlement Protection Act.
(c) The cost of the annuity premium shall be borne by [Released Party / Assignee] and shall be credited toward the Settlement Amount.
2.3 Medicare/Medicaid Considerations.
The Parties acknowledge their intent to comply fully with the Medicare Secondary Payer Act and related regulations. Claimant shall be solely responsible for establishing any Medicare Set-Aside arrangement and for reporting the settlement to CMS as required.
[// GUIDANCE: Delete Section 2.2 entirely if no structured settlement is contemplated. If Claimant is a Minor, court approval of any structured component is almost always required.]
3. MUTUAL RELEASE
3.1 Release by Claimant.
In consideration of the Settlement Amount, Claimant, for himself/herself and for all heirs, executors, administrators, successors, and assigns, hereby irrevocably releases and forever discharges the Released Parties from any and all Claims, whether known or unknown, foreseen or unforeseen, that Claimant has or may have arising out of or relating to the Incident.
3.2 Release by Released Party.
Released Party, for itself and its successors and assigns, hereby releases Claimant and Claimant’s heirs, executors, administrators, successors, and assigns from any and all claims, counterclaims, and causes of action arising out of or relating to the Incident.
3.3 Scope; § 41-3-4 NMSA 1978.
The Parties expressly intend that this mutual release shall be effective only as to the Released Parties and shall not impair any right of contribution or indemnity the Released Parties may have against non-released tortfeasors, consistent with NMSA 1978, § 41-3-4.
3.4 No Admission of Liability.
This Agreement is a compromise of disputed claims. Neither the execution of this Agreement nor any consideration provided shall be construed as an admission of liability or wrongdoing by any Party.
4. DISMISSAL OF PROCEEDINGS; MINOR SETTLEMENT APPROVAL
4.1 Dismissal With Prejudice.
Within [5] business days after Claimant’s receipt of the Lump-Sum Payment and any Court Approval required under Section 4.2, Claimant shall file a stipulation of dismissal with prejudice of the Action in [COURT NAME & CASE NO.] (or, if no Action is pending, a covenant not to sue substantially in the form attached hereto as Schedule B).
4.2 Minor Settlement Approval.
(a) If the settlement involves a Minor, the Parties acknowledge that Court Approval is a condition precedent to effectiveness of this Agreement.
(b) Claimant (through a parent, guardian, or guardian ad litem) shall promptly petition the [District Court, County, New Mexico] for Court Approval in accordance with Rule 1-017(C) NMRA and any applicable local rules.
(c) All costs associated with obtaining Court Approval shall be borne by [Party].
4.3 Failure to Obtain Court Approval.
If Court Approval is denied or materially modified, either Party may, within [15] days of entry of the order, elect to:
(i) renegotiate the settlement terms in good faith; or
(ii) declare this Agreement null and void, whereupon the Parties shall be restored to their pre-settlement positions and any funds paid shall be returned within [10] business days.
5. REPRESENTATIONS & WARRANTIES
Each Party represents and warrants as of the Effective Date that:
(a) Capacity and Authority. It has full legal right, power, and authority to execute and perform this Agreement, and, if acting on behalf of a Minor, that such Party is duly authorized or appointed as next friend, guardian, or guardian ad litem.
(b) No Assignment of Claims. It has not assigned, transferred, or otherwise conveyed any interest in the Claims or defenses released herein.
(c) Independent Counsel. It has consulted with, or had the opportunity to consult with, independent legal counsel of its choice regarding this Agreement, and enters into it voluntarily and with full understanding of its legal effect.
(d) Medicare/Medicaid Disclosures. It has disclosed all known liens, conditional payments, or reimbursement obligations owed to Medicare, Medicaid, TRICARE, or other governmental payers arising from the Incident.
(e) Truthfulness. All information provided in connection with this settlement is, to the best of its knowledge, true, complete, and accurate.
All representations and warranties shall survive the Effective Date and the performance of this Agreement.
6. COVENANTS
6.1 Lien Resolution.
Claimant shall be solely responsible for satisfaction of all valid hospital, medical, workers’ compensation, governmental, or other liens relating to the Claims (“Liens”). Claimant shall indemnify the Released Parties against any Losses arising out of or relating to Liens, except to the extent attributable to Released Party’s breach of Section 5.
6.2 Confidentiality.
Except as required by law or Court Approval, neither Party shall disclose the terms of this Agreement to any third party other than accountants, insurers, auditors, or legal counsel, each of whom shall be bound by confidentiality obligations at least as restrictive as those contained herein.
6.3 Non-Disparagement.
The Parties agree not to make any disparaging or defamatory statements concerning one another related to the Incident or this settlement.
6.4 Further Assurances.
Each Party shall execute and deliver such further documents and take such further actions as may be reasonably necessary to carry out the intent and purpose of this Agreement.
7. DEFAULT & REMEDIES
7.1 Events of Default.
An “Event of Default” occurs if Released Party fails to timely deliver the Lump-Sum Payment or fund the Structured Settlement, or if Claimant fails to execute and file the dismissal required by Section 4.1.
7.2 Cure Period.
The defaulting Party shall have [10] business days following written notice of default to cure the default.
7.3 Remedies.
If the default is not cured within the applicable cure period, the non-defaulting Party may:
(a) enforce specific performance of this Agreement;
(b) seek judgment for any unpaid Settlement Amount plus interest at [__]% per annum from the due date; and/or
(c) recover reasonable attorneys’ fees, court costs, and expenses incurred in enforcing this Agreement.
[// GUIDANCE: Consider inserting a liquidated damages clause only where enforceable and the amount is reasonable under New Mexico law.]
8. RISK ALLOCATION
8.1 Indemnification.
Each Party (“Indemnifying Party”) shall indemnify, defend, and hold harmless the other Party and its respective Released Parties (“Indemnified Parties”) from and against any and all third-party claims, liabilities, damages, penalties, and expenses (including reasonable attorneys’ fees) arising out of or relating to breach of this Agreement or falsity of any representation or warranty herein.
8.2 Limitation of Liability.
Except for liability arising from an Indemnifying Party’s willful misconduct, fraud, or obligation to pay the Settlement Amount, the aggregate liability of either Party under this Agreement shall not exceed the Settlement Amount.
8.3 Force Majeure.
No Party shall be liable for delay or failure in performance caused by acts of God, war, terrorism, pandemic, governmental action, or any other event beyond its reasonable control, provided that the affected Party gives prompt notice and uses commercially reasonable efforts to resume performance.
9. DISPUTE RESOLUTION
9.1 Governing Law.
This Agreement and any dispute arising hereunder shall be governed by and construed in accordance with the laws of the State of New Mexico, without regard to its conflict-of-laws rules.
9.2 Forum Selection.
The state courts of competent jurisdiction located in [COUNTY], New Mexico shall have exclusive jurisdiction over any Action to enforce or interpret this Agreement, and the Parties irrevocably submit to the personal jurisdiction of such courts.
[// GUIDANCE: Arbitration and jury-trial waiver provisions are intentionally omitted per user instructions. Insert only if later desired and legally permissible.]
10. GENERAL PROVISIONS
10.1 Entire Agreement.
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, or agreements, oral or written.
10.2 Amendment & Waiver.
No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. Waiver of any breach shall not constitute waiver of any other or subsequent breach.
10.3 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 Released Party may assign its payment obligations to a qualified assignment company for Structured Settlement purposes.
10.4 Successors & Assigns.
This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.
10.5 Severability.
If any provision of this Agreement is held invalid or unenforceable, such provision shall be severed and the remaining provisions shall remain in full force and effect, provided that the essential terms and intent of this Agreement are preserved.
10.6 Counterparts; Electronic Signatures.
This Agreement may be executed in multiple counterparts (including by facsimile or electronic signature), each of which shall be deemed an original and all of which together shall constitute one instrument.
10.7 Headings.
Section headings are for convenience only and shall not affect the interpretation of this Agreement.
11. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
11.1 Claimant
[CLAIMANT NAME]
Date: _______
If Claimant is a Minor:
[NAME OF PARENT/GUARDIAN], as [parent / guardian / guardian ad litem] of [MINOR NAME]
Date: _______
11.2 Released Party
[DEFENDANT NAME]
By: ______
Name: ______
Title: ______
Date: ____
[Optional Notary Acknowledgment – New Mexico]
State of New Mexico )
County of ____ ) ss.
On this ___ day of _, 20_, before me, the undersigned notary public, personally appeared _________, proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies).
Witness my hand and official seal.
Notary Public
My commission expires: ___
SCHEDULE A
(Optional) Structured Settlement Payment Schedule
| Payment Date | Payee | Amount (USD) | Payment Method | Guarantee Period |
|---|---|---|---|---|
| [MM/DD/YYYY] | [Claimant/Trust] | $[ ] | Check/ACH | [ ] Years |
| Add rows as required |
SCHEDULE B
(Optional) Covenant Not to Sue
[Attach form of covenant to be executed if no Action is pending.]
[// GUIDANCE:
1. Verify that Section 3.3 aligns with any joint tortfeasor releases needed under NMSA 1978, § 41-3-4.
2. Confirm that all Medicare compliance steps (conditional payment inquiry, final demand letter, Section 111 reporting) are complete before disbursing funds.
3. When a Minor is involved, file Petition for Approval of Settlement and Appointment of Guardian ad Litem under Rule 1-017(C) NMRA.
4. Always check local rules for additional minor-settlement requirements (e.g., deposit of funds into restricted account under court order).]