Settlement Agreement Waiver of Rights Under Cal. Civ. Code § 1542 Clause
(CA)

Summary

This settlement waiver of rights clause under Cal. Civ. Code § 1542 is a standard disclaimer attorneys should include in any settlement when settling a California state court litigation. See Cal. Civ. Code § 1542. This clause includes practical guidance and drafting notes. Settling a case can avoid the uncertainty of trial or a court ruling on a dispositive motion. You can also use a settlement to obtain at least a portion of what your client was seeking in the litigation. If you are representing a plaintiff, your client will likely obtain some measure of compensation. If you are representing a defendant, settlement can protect your client from a large jury verdict. Settling a case can also save your client substantial time and money in litigation expenses, especially if you settle before the parties conduct meaningful discovery. Once you reach a settlement, the parties will need to prepare a settlement agreement memorializing the agreement's terms. In most cases, the defendant will draft the settlement agreement for the plaintiff to review and sign. Ensure that the settlement agreement sets forth the essential agreement between the parties, including the amount that the defendant will pay the plaintiff, the timing of the payment, the form of payment, and the nature of any equitable relief to which the parties have agreed. You should also include a provision requiring the parties to file a stipulation dismissing the case—or the claims against the settling defendant if the case involves multiple defendants—with prejudice once the settlement is final. In addition to these items, you should also carefully consider whether to include other common provisions, including confidentiality provisions, non-disparagement clauses, and liquidated damages provisions. For a model settlement agreement, see Settlement Agreement and Release (CA). For additional practical guidance, see Settlement Fundamentals and Tactics (CA) and Settlement Fundamentals Checklist (CA).