Settlement Agreement and Mutual Release (Short Form)

SETTLEMENT AGREEMENT AND MUTUAL RELEASE (SHORT FORM)

State of Texas

IMPORTANT NOTICE: This document resolves legal claims. Texas law governs proportionate responsibility, contribution, and releases in multi-defendant cases (Tex. Civ. Prac. & Rem. Code Ch. 33). A settling defendant's percentage of fault is determined by the trier of fact and offsets the claimant's recovery against non-settling defendants under § 33.012. 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 and Number: [________________________________]
Cause 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, Texas Civil Practice and Remedies Code § 33.012 provides that settlement payments reduce any judgment against non-settling defendants by the sum of the dollar amounts of all settlements;

WHEREAS, under Tex. Civ. Prac. & Rem. Code § 33.014, a settlement in good faith bars any claim by a non-settling person against the settling party for contribution;

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 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. If this Agreement was reached through mediation under the Texas ADR Act, it may be enforceable as a contract under Tex. Civ. Prac. & Rem. Code § 154.071.

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 (Texas).
THE PARTIES EXPRESSLY ACKNOWLEDGE that this Agreement covers claims that are presently unknown, unsuspected, or not fully appreciated, as well as those presently known. Texas law does not have a statutory provision equivalent to California Civil Code § 1542; however, the Parties nonetheless expressly waive any doctrine, rule, or principle — whether in law or equity — that would limit the scope of this release to known claims only. The Parties acknowledge they may later discover facts additional to or different from those currently known, and agree that this Agreement shall be a full and final release of all Claims arising from the Dispute.

2.4 Proportionate Responsibility Notice (Texas — Tex. Civ. Prac. & Rem. Code § 33.012).
The Parties are aware that:

• Under § 33.012, any judgment against non-settling defendants will be reduced by the dollar amount of all settlements paid to the plaintiff.
• Under § 33.014, a settling defendant who settles in good faith is discharged from all claims for contribution by other persons.
• Under § 33.015, a person who settles cannot seek contribution from any person to whom the claimant has given a release or covenant not to sue.

This release is intended to:
☐ Release ONLY the Parties named herein. Non-settling parties remain liable for their proportionate share, reduced by the amount of this settlement.
☐ Release ALL persons who may be jointly liable for the Released Claims.

2.5 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: NONSUIT / 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 nonsuit/voluntary dismissal with prejudice pursuant to Texas Rule of Civil Procedure 162.
☐ File a Joint Motion to Dismiss with Prejudice.
☐ Other: [________________________________]

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

4.3 Court Approval.
☐ Not applicable.
☐ Court approval required: ☐ Minor party (Tex. Fam. Code § 142.005) ☐ Incapacitated person ☐ Other: [________________________________]

Note on Minor's Settlements: Under Texas Family Code § 142.005, when a minor is entitled to receive settlement proceeds exceeding $25,000 in a personal injury or wrongful death claim, the settlement requires court approval and the funds must be managed under court supervision.

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: Texas courts generally 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.

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

8.2 Venue.
☐ Exclusive venue in the District Court of [________________________________] County, Texas.
☐ 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 the Texas Uniform Electronic Transactions Act, Tex. Bus. & Com. Code § 322.001 et seq.

8.6 Mediated Settlement Agreement.
☐ If this Agreement was reached through mediation conducted under the Texas Civil Practice and Remedies Code Chapter 154, it is binding and irrevocable under § 154.071 and may be enforced by a judgment.

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: TEXAS-SPECIFIC DISCLOSURES

9.1 Workers' Compensation. If any released claim involves a workplace injury, consult an attorney regarding the effect on Texas workers' compensation rights under the Texas Workers' Compensation Act, Tex. Labor Code § 401.001 et seq.

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 Government Entities. If a governmental unit is a party, review applicable Texas statutes on authority to settle, sovereign immunity waivers, and required approvals under the Texas Tort Claims Act, Tex. Civ. Prac. & Rem. Code § 101.001 et seq.

9.4 Health Care Liability Claims. If this settlement involves a health care liability claim under Chapter 74 of the Texas Civil Practice and Remedies Code, the settling party's percentage of responsibility as found by the trier of fact — rather than the dollar amount of the settlement — may be used to reduce the judgment against non-settling defendants if elected by the defendant. Consult counsel.

9.5 Mediation Confidentiality. Under Tex. Civ. Prac. & Rem. Code § 154.073, communications made during mediation are generally confidential and not subject to disclosure unless all parties agree or an exception applies.

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: [________________________________]
Texas State Bar Number: [________________________________]
Firm: [________________________________]
Date: [__/__/____]

PARTY B:

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

Party B's Counsel (if applicable):

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

OPTIONAL: NOTARIZATION

NOTARIZATION — PARTY A:

State of Texas
County of [________________________________]

Before me, the undersigned authority, on [__/__/____], personally appeared [________________________________], known to me (or proved to me through [________________________________] as identification) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she/they executed the instrument for the purposes and consideration therein expressed.

Notary Public, State of Texas
Printed Name: [________________________________]
My Commission Expires: [__/__/____]
[NOTARY SEAL]

NOTARIZATION — PARTY B:

State of Texas
County of [________________________________]

Before me, the undersigned authority, on [__/__/____], personally appeared [________________________________], known to me (or proved to me through [________________________________] as identification) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she/they executed the instrument for the purposes and consideration therein expressed.

Notary Public, State of Texas
Printed Name: [________________________________]
My Commission Expires: [__/__/____]
[NOTARY SEAL]

EXHIBITS / ATTACHMENTS

☐ Exhibit A — Payment Schedule
☐ Exhibit B — Promissory Note (if installments)
☐ Exhibit C — Joint Motion/Agreed Order of Dismissal with Prejudice
☐ Exhibit D — Other: [________________________________]

SOURCES AND REFERENCES

• Tex. Civ. Prac. & Rem. Code Ch. 33 (Proportionate Responsibility): https://statutes.capitol.texas.gov/Docs/CP/htm/CP.33.htm
• Tex. Civ. Prac. & Rem. Code § 154.071 (Mediated Settlement): https://statutes.capitol.texas.gov/
• Texas Family Code § 142.005 (Minor's Settlement): https://statutes.capitol.texas.gov/
• Texas Rules of Civil Procedure Rule 162: https://www.txcourts.gov/
• IRS Form 1099 reporting: https://www.irs.gov/forms-pubs/about-form-1099-misc