Settlement Agreement and Mutual Release (Short Form)

SETTLEMENT AGREEMENT AND MUTUAL RELEASE (SHORT FORM)

State of New York

IMPORTANT NOTICE: This document resolves legal claims. New York General Obligations Law § 15-108 provides that a release of one tortfeasor reduces claims against other tortfeasors by the greatest of: (a) the stipulated amount, (b) the consideration paid, or (c) the released party's equitable share. GOL § 15-108 also relieves the settling party from contribution obligations. 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: [________________________________]
Index Number / Case Number: [________________________________]
Caption: [________________________________]
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, New York General Obligations Law § 15-108 governs releases and covenants not to sue given to one of two or more persons liable in tort for the same injury, and provides specific rules for reduction of claims and relief from contribution;

WHEREAS, under GOL § 15-108(c), a release given in good faith relieves the settling party from all liability for contribution to any other tortfeasor;

WHEREAS, CPLR § 5003-a requires that settlement funds be paid within 21 days (in cases involving a judgment) or as agreed, and failure to pay in a timely fashion entitles the plaintiff to interest at the judgment rate;

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 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 CPLR § 5003-a Compliance.
The Parties acknowledge CPLR § 5003-a, which provides that any settling defendant shall pay all sums due to the plaintiff within 21 days after tender of a duly executed general release and a stipulation of discontinuance. Failure to pay within such period shall entitle the plaintiff to interest at the rate set forth in CPLR § 5004 (currently 9% per annum). The Parties agree to comply with these requirements.

1.3 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.)

1.4 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.

1.5 Default on Payment.
If Payor fails to make any payment when due, Payee shall provide [____] days' written notice to cure. If uncured, Payee may seek all available remedies, including interest at the New York statutory judgment rate and enforcement of 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 is intended to cover all claims arising from the Dispute, whether presently known or unknown, suspected or unsuspected. New York law does not have a statutory provision equivalent to California Civil Code § 1542; however, the Parties nonetheless expressly waive any doctrine or principle that would limit this release to known claims only. The Parties acknowledge they may later discover facts additional to or different from those currently known, and agree this Agreement shall be a full and final release of all such claims.

2.4 New York GOL § 15-108 — Joint Tortfeasor Provisions.

The Parties are aware of the provisions of New York General Obligations Law § 15-108, which provides that:

• A release given to one tortfeasor does not discharge other tortfeasors from liability unless its terms expressly so provide.
• The claim against other tortfeasors is reduced by the greatest of: (a) the amount stipulated by the release or covenant; (b) the consideration paid; or (c) the released tortfeasor's equitable share of the damages under CPLR Article 14.
• A release given in good faith relieves the settling party from all liability for contribution.

This release applies to:
☐ ONLY the Parties named herein. Claims against other jointly liable persons are expressly preserved, subject to reduction under GOL § 15-108.
☐ ALL persons jointly liable for the Released Claims (terms expressly so provide).

2.5 GOL § 15-108 Requirements for Coverage.
The Parties acknowledge that this release is a "release" for purposes of GOL § 15-108 because: (a) the consideration is monetary and greater than one dollar; (b) this release completely or substantially terminates the dispute between Party A and Party B; and (c) this release is provided prior to entry of judgment (if applicable).

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

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: DISCONTINUANCE WITH PREJUDICE

4.1 Obligation to Discontinue.
Upon receipt of the Settlement Amount (or upon execution, if no payment is required), the Parties shall execute and file:

☐ A Stipulation of Discontinuance with Prejudice pursuant to CPLR § 3217(a)(2).
☐ Other: [________________________________]

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

4.3 Tender of Release.
Party A shall tender a duly executed General Release simultaneously with or promptly following execution of this Agreement, to trigger the payment obligations under CPLR § 5003-a.

4.4 Court Approval.
☐ Not applicable.
☐ Court approval required: ☐ Infant (CPLR Article 12) ☐ Incompetent person ☐ Other: [________________________________]

Note on Infant/Incompetent Settlements: Under CPLR §§ 1207 and 1208, settlements involving infants or judicially declared incompetents require court approval. A motion for approval must be supported by an affidavit of the infant's guardian or next friend, medical affidavit if personal injury, attorney's affidavit, and proposed order.

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.

Note: New York courts enforce confidentiality provisions in settlement agreements as binding contractual obligations.

☐ 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.

Note: New York Human Rights Law and related statutes may restrict non-disparagement clauses in certain employment settlement agreements involving sexual harassment or discrimination claims. Consult counsel.

☐ 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 New York, without regard to conflict-of-laws principles.

8.2 Venue.
☐ Exclusive venue in the Supreme Court of the State of New York, [________________________________] County.
☐ 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 under New York Electronic Signatures and Records Act (ESRA), State Technology Law Article 3.

8.6 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: NEW YORK-SPECIFIC DISCLOSURES

9.1 Workers' Compensation. If any released claim involves a workplace injury, consult an attorney regarding the effect on New York workers' compensation rights under the Workers' Compensation Law.

9.2 ADEA/Age Discrimination. If waiving ADEA claims, Older Workers Benefit Protection Act requirements (21-day review period, 7-day revocation period) apply.

9.3 NYSHRL/NYCHRL. If this Agreement involves claims under the New York State Human Rights Law or New York City Human Rights Law, consult counsel regarding mandatory language and restrictions on non-disclosure.

9.4 New York Human Rights Law § 5-336. New York Executive Law § 5-336 (formerly codified differently) restricts non-disclosure agreements in settlements of claims related to sexual harassment or any other form of discrimination, harassment, or retaliation. If applicable, the settlement must include a specific notice of right to void the nondisclosure clause within 21 days.

9.5 Structured Settlement. If this settlement involves periodic payments, consult counsel regarding the New York Structured Settlement Protection Act.

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: [________________________________]
New York Attorney Registration Number: [________________________________]
Firm: [________________________________]
Date: [__/__/____]

PARTY B:

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

Party B's Counsel (if applicable):

Signature: [________________________________]
Printed Name: [________________________________]
New York Attorney Registration Number: [________________________________]
Firm: [________________________________]
Date: [__/__/____]

OPTIONAL: ACKNOWLEDGMENT (New York)

ACKNOWLEDGMENT — PARTY A:

State of New York
County of [________________________________]

On [__/__/____], before me, the undersigned, personally appeared [________________________________], personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity, and that by his/her/their signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

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

ACKNOWLEDGMENT — PARTY B:

State of New York
County of [________________________________]

On [__/__/____], before me, the undersigned, personally appeared [________________________________], personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity, and that by his/her/their signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

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

EXHIBITS / ATTACHMENTS

☐ Exhibit A — Payment Schedule
☐ Exhibit B — Promissory Note (if installments)
☐ Exhibit C — Stipulation of Discontinuance with Prejudice
☐ Exhibit D — General Release (separate document if required)
☐ Exhibit E — Other: [________________________________]

SOURCES AND REFERENCES

• New York GOL § 15-108 (Release of Joint Tortfeasors): https://law.justia.com/codes/new-york/gob/article-15/title-1/15-108/
• CPLR § 5003-a (Prompt Payment): https://www.nysenate.gov/legislation/laws/CVP/5003-A
• CPLR § 3217 (Voluntary Discontinuance): https://www.nysenate.gov/legislation/laws/CVP/3217
• New York Executive Law § 5-336 (NDA in Discrimination Cases): https://www.nysenate.gov/
• IRS Form 1099 reporting: https://www.irs.gov/forms-pubs/about-form-1099-misc