Settlement Agreement and Mutual Release (Short Form)

SETTLEMENT AGREEMENT AND MUTUAL RELEASE (SHORT FORM)

State of Arkansas

IMPORTANT NOTICE: This document resolves legal claims. Under Arkansas law, a release given to one of several jointly liable persons reduces claims against the others by the amount of the consideration paid, unless the release expressly provides otherwise (Ark. Code Ann. § 16-61-204). Read carefully and consult an attorney before signing.

RECITALS AND PARTIES

This Settlement Agreement and Mutual Release (Short Form) (this "Agreement") is entered into as of [__/__/____] (the "Effective Date") by and between:

PARTY A (Releasing Party / Claimant):
Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Representative/Counsel: [________________________________]

PARTY B (Released Party / Respondent):
Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Representative/Counsel: [________________________________]

Party A and Party B are collectively referred to as the "Parties."

CASE/DISPUTE REFERENCE:
Court (if applicable): [________________________________]
Case Name: [________________________________]
Case/Docket Number: [________________________________]
Nature of Dispute: [________________________________]
Date Dispute Arose: [__/__/____]

RECITALS

WHEREAS, a dispute has arisen between the Parties relating to [________________________________] (the "Dispute");

WHEREAS, the Parties desire to resolve the Dispute fully and finally, without admitting liability;

WHEREAS, Arkansas law recognizes that settlement agreements are enforceable contracts and courts may enter judgment on a signed settlement agreement upon motion of a party;

WHEREAS, under Ark. Code Ann. § 16-61-204, a release given in good faith to one of two or more persons liable for a tort does not discharge others from liability unless its terms so provide, but reduces the claim against others;

WHEREAS, the Parties have had the opportunity to consult with counsel and understand this Agreement;

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

SECTION 1: SETTLEMENT PAYMENT AND CONSIDERATION

1.1 Settlement Amount.

In full and final satisfaction of all claims described herein, [________________________________] ("Payor") shall pay to [________________________________] ("Payee") the total sum of $[________________________________] (the "Settlement Amount"), subject to the following terms:

☐ Lump Sum Payment: Paid in a single payment on or before [__/__/____], by:

☐ Check payable to: [________________________________]
☐ Wire transfer to account: [________________________________] (routing: [____________________])
☐ Other: [________________________________]

☐ Installment Payments: Paid in installments as follows:

1.2 Tax Identification and Reporting.
Payee's Social Security Number / EIN: [________________________________]
(Payments of $600 or more may require IRS Form 1099 reporting. Each Party is responsible for its own tax obligations.)

1.3 Attorneys' Fees and Costs.
☐ Each Party shall bear its own attorneys' fees and costs.
☐ Party [____] shall pay Party [____]'s attorneys' fees in the amount of $[________________________________].
☐ Attorneys' fees are incorporated within the Settlement Amount.

1.4 Default on Payment.
If Payor fails to make any payment when due, Payee shall provide [____] days' written notice to cure. If uncured, the full remaining balance becomes immediately due and payable, and Payee may pursue all available remedies including entry of judgment on this Agreement.

SECTION 2: MUTUAL RELEASE OF CLAIMS

2.1 Release by Party A.
Party A, on behalf of itself and its heirs, executors, administrators, successors, assigns, agents, officers, directors, employees, and representatives (collectively, "Party A Releasors"), hereby fully, finally, and forever releases, acquits, and discharges Party B and its heirs, executors, administrators, successors, assigns, agents, officers, directors, employees, insurers, and representatives (collectively, "Party B Releasees") from any and all claims, demands, actions, causes of action, suits, debts, obligations, liabilities, damages, losses, costs, expenses, and attorneys' fees of any kind or nature whatsoever, whether known or unknown, whether in law or equity, whether in contract, tort, statute, or otherwise, arising out of, related to, or connected with the Dispute, through the Effective Date (collectively, "Released Claims").

2.2 Release by Party B.
Party B, on behalf of itself and its heirs, executors, administrators, successors, assigns, agents, officers, directors, employees, and representatives (collectively, "Party B Releasors"), hereby fully, finally, and forever releases, acquits, and discharges Party A and its heirs, executors, administrators, successors, assigns, agents, officers, directors, employees, insurers, and representatives (collectively, "Party A Releasees") from all Released Claims arising out of, related to, or connected with the Dispute through the Effective Date.

2.3 Waiver of Unknown Claims.
THE PARTIES EXPRESSLY ACKNOWLEDGE that this Agreement covers claims that are presently unknown, unsuspected, or not fully appreciated, as well as those presently known. The Parties intend to and do hereby fully, finally, and forever settle and release all Claims arising from the Dispute, regardless of whether additional facts may later be discovered. Arkansas law does not have a statutory equivalent to California Civil Code § 1542; the Parties nonetheless expressly waive any law or principle that might limit the scope of this release to known claims only.

2.4 Joint Tortfeasor Notice (Arkansas).
Under Ark. Code Ann. § 16-61-204, a release given in good faith to one jointly liable person does not discharge others from liability unless its terms expressly so provide, but reduces the claim against others by the greater of: (a) the amount stipulated in the release, or (b) the consideration paid.

☐ This release IS intended to release all joint tortfeasors and co-defendants.
☐ This release DOES NOT release any person or entity not a signatory hereto. Claims against non-signatories are reduced in accordance with Ark. Code Ann. § 16-61-204.

2.5 Claims Not Released.
☐ Claims arising from breach of this Agreement.
☐ Claims arising after the Effective Date.
☐ Other: [________________________________]

SECTION 3: NO ADMISSION OF LIABILITY

This Agreement constitutes a compromise of disputed claims. No Party admits any liability, fault, negligence, or wrongdoing. This Agreement shall not be admissible as evidence of liability in any proceeding.

SECTION 4: DISMISSAL WITH PREJUDICE

4.1 Obligation to Dismiss.
Within [____] calendar days of receipt of the Settlement Amount (or first installment), the Parties shall:

☐ File a Joint Stipulation of Dismissal with Prejudice pursuant to Ark. R. Civ. P. 41.
☐ Other dismissal mechanism: [________________________________]

4.2 Filing Responsibility.
Responsible Party/Counsel for filing: [________________________________]

4.3 Court Approval.
☐ Not applicable.
☐ Court approval required: ☐ Minor party (Ark. Code Ann. § 16-13-314) ☐ Incompetent party ☐ Other: [________________________________]

Note on Minor's Settlements: Under Arkansas law, settlements on behalf of minors may require court approval depending on the amount and circumstances. Consult Ark. Code Ann. § 16-13-314 and related provisions.

SECTION 5: CONFIDENTIALITY

☐ Confidentiality Applies. The existence, terms, and conditions of this Agreement are confidential. Parties agree not to disclose terms to third parties except:
(a) to attorneys, accountants, and advisors under confidentiality obligations;
(b) as required by law, regulation, or court order;
(c) as necessary to enforce this Agreement;
(d) for tax reporting purposes.

Any unauthorized disclosure may give rise to claims for damages and injunctive relief.

☐ No Confidentiality Requirement.

SECTION 6: NON-DISPARAGEMENT

☐ Non-Disparagement Applies. Each Party agrees not to make false or disparaging statements — oral, written, or electronic — regarding the other Party, its personnel, products, or services. This does not restrict truthful statements made pursuant to legal obligation.

☐ No Non-Disparagement Clause.

SECTION 7: REPRESENTATIONS AND WARRANTIES

Each Party represents and warrants that:

7.1 It has full legal authority to enter into this Agreement.
7.2 It has not assigned, transferred, or conveyed any Released Claim to a third party.
7.3 No other legal proceedings related to the Dispute are pending other than as disclosed.
7.4 It has been advised of its right to consult independent legal counsel and has either done so or knowingly waived that right.
7.5 This Agreement is entered into freely, voluntarily, and without duress or coercion.
7.6 It has read and fully understands this Agreement.

SECTION 8: MISCELLANEOUS PROVISIONS

8.1 Governing Law.
This Agreement shall be governed by the laws of the State of Arkansas, without regard to conflict-of-laws principles.

8.2 Venue.
☐ Exclusive venue in the Circuit Court of [________________________________] County, Arkansas.
☐ Other: [________________________________]

8.3 Integration.
This Agreement constitutes the entire understanding between the Parties regarding the subject matter hereof. Amendments must be in writing and signed by both Parties.

8.4 Severability.
If any provision is held invalid, the remaining provisions shall continue in full force.

8.5 Counterparts / Electronic Signatures.
This Agreement may be executed in counterparts. Electronic signatures shall be valid and binding.

8.6 Enforcement as Judgment.
The Parties acknowledge that under Arkansas law, a court may enter judgment on this signed settlement agreement upon the motion of a party.

8.7 Construction.
This Agreement shall be construed without regard to any presumption or rule requiring construction against the party causing this Agreement to be drafted.

SECTION 9: ARKANSAS-SPECIFIC DISCLOSURES

9.1 Workers' Compensation. If any released claim involves a workplace injury, consult an attorney regarding the effect on Arkansas workers' compensation rights under the Arkansas Workers' Compensation Law, Ark. Code Ann. § 11-9-101 et seq.

9.2 Comparative Fault. Arkansas follows a modified comparative fault system. The Parties are aware that any apportionment of fault may affect recovery rights.

9.3 ADEA/Age Discrimination. If this Agreement includes waiver of ADEA claims, Older Workers Benefit Protection Act requirements (21-day review period, 7-day revocation period) apply.

9.4 Government Entities. If a government entity is a party, review applicable Arkansas statutes on authority to settle and required approvals.

9.5 Statute of Limitations Savings. The Parties acknowledge that Ark. Code Ann. § 16-56-126 provides a one-year savings period to refile if a case is nonsuited. By executing this Agreement, the Parties intend to foreclose any such refiling with respect to the Released Claims.

SECTION 10: SIGNATURES

BY SIGNING BELOW, EACH PARTY CONFIRMS IT HAS READ, UNDERSTANDS, AND AGREES TO THIS AGREEMENT IN ITS ENTIRETY.

PARTY A:

Signature: [________________________________]
Printed Name: [________________________________]
Title (if applicable): [________________________________]
Date: [__/__/____]

Party A's Counsel (if applicable):

Signature: [________________________________]
Printed Name: [________________________________]
Arkansas Bar Number: [________________________________]
Firm: [________________________________]
Date: [__/__/____]

PARTY B:

Signature: [________________________________]
Printed Name: [________________________________]
Title (if applicable): [________________________________]
Date: [__/__/____]

Party B's Counsel (if applicable):

Signature: [________________________________]
Printed Name: [________________________________]
Arkansas Bar Number: [________________________________]
Firm: [________________________________]
Date: [__/__/____]

OPTIONAL: NOTARIZATION

NOTARIZATION — PARTY A:

State of Arkansas
County of [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public in and for the State of Arkansas, personally appeared [________________________________], known to me to be the person whose name is subscribed to the within instrument and acknowledged execution thereof.

Notary Public Signature: [________________________________]
My Commission Expires: [__/__/____]
[NOTARY SEAL]

NOTARIZATION — PARTY B:

State of Arkansas
County of [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public in and for the State of Arkansas, personally appeared [________________________________], known to me to be the person whose name is subscribed to the within instrument and acknowledged execution thereof.

Notary Public Signature: [________________________________]
My Commission Expires: [__/__/____]
[NOTARY SEAL]

EXHIBITS / ATTACHMENTS

☐ Exhibit A — Payment Schedule
☐ Exhibit B — Promissory Note (if installments)
☐ Exhibit C — Joint Stipulation of Dismissal
☐ Exhibit D — Other: [________________________________]

SOURCES AND REFERENCES

• Arkansas Code Annotated Title 16 (Practice, Procedure & Courts): https://portal.arkansas.gov/service/arkansas-code-search-laws-and-statutes/
• Ark. Code Ann. § 16-61-204 (Release of Joint Tortfeasors): https://law.justia.com/codes/arkansas/
• Ark. Code Ann. § 16-56-126 (Savings Statute): https://law.justia.com/codes/arkansas/2019/title-16/subtitle-5/chapter-56/subchapter-1/section-16-56-126/
• Arkansas Rules of Civil Procedure: https://courts.arkansas.gov/
• IRS Form 1099 reporting: https://www.irs.gov/forms-pubs/about-form-1099-misc