Settlement Agreement and Mutual Release (Short Form)

SETTLEMENT AGREEMENT AND MUTUAL RELEASE (SHORT FORM)

State of Arizona

IMPORTANT NOTICE: This document resolves legal claims. Arizona's release and covenant-not-to-sue statute (A.R.S. § 12-2504) governs the effect of releases on other jointly liable persons. Arizona follows a proportionate responsibility system under A.R.S. §§ 12-2505 and 12-2506. 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, under A.R.S. § 12-2504, a release given to one of two or more persons liable in tort does not discharge other persons from liability for the injury unless its terms so provide, but it reduces the claim against other tortfeasors to the extent of any amount stipulated or consideration paid, whichever is greater;

WHEREAS, Arizona follows a proportionate fault system under A.R.S. §§ 12-2505 and 12-2506;

WHEREAS, the Parties have had the opportunity to consult with counsel and understand the nature and extent of 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 payment terms:

☐ Lump Sum Payment: The Settlement Amount shall be paid in a single payment on or before [__/__/____], by:

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

☐ Installment Payments: The Settlement Amount shall be 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 bears 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 seek all available remedies.

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 (Arizona).
THE PARTIES EXPRESSLY ACKNOWLEDGE that this Agreement is intended to cover all claims arising from the Dispute, whether presently known or unknown, suspected or unsuspected, or not fully appreciated. Arizona does not have a statutory provision equivalent to California Civil Code § 1542; however, the Parties nonetheless expressly waive any law, doctrine, or principle — including any equitable doctrine or common law rule — that would limit the scope of this release to known claims only.

The Parties acknowledge that they may discover facts in addition to or different from those they currently know or believe to be true, and that this Agreement shall nonetheless be a full and final release of all claims arising from or related to the Dispute.

2.4 Joint Tortfeasor Notice (Arizona — A.R.S. § 12-2504).
Under A.R.S. § 12-2504, this release:

☐ IS intended to release all joint tortfeasors and co-defendants in the above-referenced matter and discharges all persons from liability for the claims released herein.

☐ DOES NOT release any person or entity not a signatory to this Agreement. The claims against any non-signatory are reduced by the greater of: (a) the amount stipulated in this release, or (b) the consideration paid, and the released Party is discharged from liability for contribution.

2.5 Proportionate Responsibility (Arizona).
The Parties are aware that Arizona follows a proportionate fault system under A.R.S. §§ 12-2505 and 12-2506. Nothing in this Agreement affects the assessment of fault among non-settling parties, except as expressly stated.

2.6 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 Stipulation of Dismissal with Prejudice pursuant to Ariz. R. Civ. P. 41(a)(1).
☐ Other: [________________________________]

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

4.3 Court Approval.
☐ Not applicable.
☐ Court approval required: ☐ Minor party (A.R.S. § 14-5416) ☐ Incapacitated person ☐ Other: [________________________________]

Note on Minor's Settlements: Under A.R.S. § 14-5416, the superior court must approve settlements on behalf of a minor or protected person when the net settlement exceeds $10,000 or involves periodic payments. Confirmation procedures set by the court apply.

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.

☐ 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 Arizona, without regard to conflict-of-laws principles.

8.2 Venue.
☐ Exclusive venue in the Superior Court of [________________________________] County, Arizona.
☐ 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 Notice.
All notices under this Agreement shall be in writing and delivered to the addresses set forth above, or to such other address as a Party may designate in writing.

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: ARIZONA-SPECIFIC DISCLOSURES

9.1 Workers' Compensation. If any released claim involves a workplace injury, consult an attorney regarding the effect on Arizona workers' compensation rights under A.R.S. § 23-901 et seq.

9.2 Government Entity Settlements. If a government entity is a party, review applicable Arizona statutes on authority to settle, required approvals, and notice of claim requirements under A.R.S. § 12-821.01.

9.3 ADEA/Age Discrimination. If this Agreement includes waiver of ADEA claims, Older Workers Benefit Protection Act requirements apply.

9.4 Structured Settlements. If settlement involves periodic payments, review Arizona structured settlement protection statutes.

9.5 Arizona Notice of Claim. If a claim involves a public entity, ensure compliance with A.R.S. § 12-821.01 notice-of-claim requirements prior to settlement.

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: [________________________________]
Arizona Bar Number: [________________________________]
Firm: [________________________________]
Date: [__/__/____]

PARTY B:

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

Party B's Counsel (if applicable):

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

OPTIONAL: NOTARIZATION

NOTARIZATION — PARTY A:

State of Arizona
County of [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public in and for the State of Arizona, 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 Arizona
County of [________________________________]

On [__/__/____], before me, [________________________________], a Notary Public in and for the State of Arizona, 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 — Stipulation of Dismissal
☐ Exhibit D — Other: [________________________________]

SOURCES AND REFERENCES

• A.R.S. § 12-2504 (Release or Covenant Not to Sue): https://law.justia.com/codes/arizona/2019/title-12/section-12-2504/
• Arizona Revised Statutes Title 12 (Courts and Civil Proceedings): https://www.azleg.gov/arsDetail/?title=12
• Arizona Rules of Civil Procedure: https://www.azcourts.gov/
• IRS Form 1099 reporting: https://www.irs.gov/forms-pubs/about-form-1099-misc